Dubai’s VARA Updates Marketing Regs and Launches New Guidance for VASPs

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar is a seasoned journalist who has been reporting on cryptocurrency and blockchain technology since 2015. Her work has appeared in leading publications including The Wall Street Journal,...

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September 26, 2024

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Dubai’s Virtual Assets Regulatory Authority (VARA) said it has updated its marketing regulations as part of its broader framework for Virtual Asset Service Providers (VASPs) operating in the Emirates. The new regulations will come into effect on October 1.

The updated regulations will be stricter and aim to avoid “misleading information” and increase transparency, and consumer protection in the marketing practices of the rapidly growing virtual assets sector in Dubai.

The centrepiece of these updates is VARA’s new “Marketing Guidance Document” which provides instructions for VASPs engaged in promoting their services within the region. The online document is designed to help VASPs navigate the regulatory landscape while ensuring that their marketing efforts meet the highest standards of accuracy, ethical conduct, and transparency, said VARA.

Rules Apply to All Firms Marketing Virtual Assets in UAE

Updated regulations aim to prevent misleading information and prioritize the protection of consumer interests. The rules apply to all entities involved in marketing virtual assets or related activities in Dubai, regardless of their licensing status with VARA.

This means that both licensed and unlicensed entities are subject to the same marketing rules, ensuring consistent standards across the industry.

The regulations cover various aspects of marketing communications, including the proper use of language and the importance of providing full and clear disclosures.

The goal is to make sure that consumers are well-informed about the risks and opportunities associated with virtual assets. Ethical marketing is a core principle, ensuring that advertising in this space is not only legal but also transparent and fair to potential investors and users, said VARA.

Hefty Fines

Those breaking the new rules and violating marketing regulations could face huge fines of up to 10,000,000 AED ($2.7 million).

“As the world’s first independent regulator for virtual assets, VARA is dedicated to creating a regulatory environment that not only protects consumers but also supports the growth and innovation of the virtual assets sector,” said Matthew White, CEO of VARA.

“Our updated marketing regulations and the newly issued guidance document reflect our commitment to maintaining Dubai’s position as a global leader in digital finance. We believe that by providing clear and actionable guidance, we can help VASPs deliver their services responsibly while fostering greater trust and transparency in the market.”

At a recent panel discussion during Korea Blockchain Week (KBW2024) Binance CEO Richard Teng praised Dubai and its regulatory framework for digital assets.

Commenting on the Middle East, Teng pointed to innovative regulatory approaches in countries like Abu Dhabi, Bahrain, and Dubai. He praised Dubai’s establishment of VARA which is dedicated solely to overseeing the crypto industry.