Dubai moves strategically to balance innovation in crypto finance by introducing stricter guidelines for crypto marketing.
Recently, Dubai’s Virtual Assets Regulatory Authority (VARA) has introduced stricter guidelines for crypto marketing, effective October 1, 2024. These regulations are designed to ensure transparency and protect consumers from misleading promotions and the risks associated with virtual assets, which are known for their volatility.
Key Elements of the New Guidelines Include:
1. Mandatory Risk Disclosure: All promotional materials must now include warnings about the risks involved, stating that virtual assets may lose value, partly or fully, and are subject to extreme market fluctuations.
2. Accurate and Transparent Information: Firms are now required to ensure that all marketing materials provide factual and transparent information. False or misleading claims are prohibited, and VARA will enforce penalties for non-compliance.
3. Ethical Marketing Practices: Companies are urged to use appropriate, non-exploitative language in marketing.
4. Broader Context and Global Trends: Dubai’s move follows a global trend of tightening crypto marketing regulations introduced in countries like Belgium, Singapore, and the United Kingdom.
In Dubai, these new rules reflect VARA’s commitment to positioning the city as a global leader in digital finance by creating a safer, more regulated environment for consumers and crypto companies.
To ensure strict adherence to the guidelines, penalties ranging from fines to loss of operating licenses have been put in place.
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