Arabian Post Staff -Dubai
The Virtual Assets Regulatory Authority (VARA) unveiled updated marketing regulations aimed at enhancing the operational framework for virtual asset service providers (VASPs) in Dubai. This move is part of a broader effort to ensure that consumer protection and transparency are prioritized in the burgeoning virtual asset sector.
Matthew White, CEO of VARA, emphasized the importance of maintaining a balanced regulatory environment that fosters innovation while safeguarding consumers. The new guidelines establish clear standards for promotional content, requiring that all marketing be identifiable as such, particularly in social media channels. Marketers must use terms like “ad” or “advertisement” to make the nature of their content transparent .
A significant aspect of the updated regulations includes strict provisions regarding monetary and non-monetary incentives. These incentives must be presented responsibly, avoiding any language that might mislead potential investors about the risks involved. Any promotional material offering these incentives must also include prominent risk disclosures to prevent misleading interpretations .
The updated guidelines also require that disclaimers be clearly displayed and easily noticeable across all devices, ensuring that consumers have access to necessary information regardless of the platform they use. This focus on clarity and transparency reflects VARA’s commitment to fostering trust in the digital finance ecosystem.
VARA has introduced limited exemptions for entities not licensed by them, allowing these organizations to market virtual assets at physical events in Dubai. However, these entities must follow specific guidelines, including not engaging in any virtual asset activities within the UAE and providing clear disclaimers regarding their licensing status. The regulations stipulate that event organizers must verify the qualifications of attendees and ensure that exhibitors comply with VARA’s licensing requirements .
