New Guidelines in Dubai Aim to Safeguard Investors in Booming Crypto Market
Dubai, known for its crypto-friendly environment, is now taking steps to regulate how crypto investments are marketed.
As the city continues to attract significant crypto investments, this move marks a shift in its approach to virtual asset regulations.
Dubai’s Virtual Asset Regulatory Authority (VARA) has revised its marketing rules for cryptocurrency investments, requiring firms to provide clear risk warnings in their advertisements. Beginning October 1, virtual asset service providers (VASPs) in the UAE will need to disclose that virtual assets can lose all or part of their value and are prone to extreme volatility.
These new guidelines, part of VARA’s “Marketing Guidance Document,” will ensure that firms deliver consistent, transparent information, making it easier for them to navigate Dubai’s regulatory landscape. Last month, in a landmark decision, Dubai’s courts even approved the use of cryptocurrencies for salary payments.
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The updated rules are designed to protect investors by raising awareness about the risks of virtual assets. VARA emphasized the importance of accuracy in marketing, stating that all entities involved in virtual asset promotion must adhere to these standards, whether they are licensed by VARA or not.
As interest in crypto investment products grows, VARA’s standardized approach will help licensed companies meet regulatory requirements. These rules apply to leading crypto exchanges operating in the region. VARA has also set deadlines for VASPs to apply for licenses to ensure compliance. Matthew White, CEO of VARA, said the regulator is committed to fostering innovation while ensuring consumer protection in the virtual asset sector.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
