Dubai Regulator Issues Guidelines for Virtual Asset Marketing and Advertising
The Virtual Asset Regulatory Authority (VARA), the regulatory body for virtual assets in Dubai, recently released the rules governing the marketing, advertising, and promotions of digital assets, which are applicable to any company employing media outlets and publishing channels that specifically target customers in Dubai.
A range of outreach and advertising activities are covered by the VARA guidelines, including the publication of information, awareness-building activities, customer engagement activities, and investor solicitations according to the report. Guidelines applicable to VASPs with a Dubai license. The rules also cover any virtual asset-related communications made by any organization to market to customers in Dubai specifically through Dubai-based media sites, search platforms and online and offline publishing channels that explicitly target Dubai's market. The regulations, according to reports, reflect the regulator's goal to offer a legal framework that fosters economic opportunities without affecting the security of the market.
The guidelines also require all Dubai licensed virtual assets service providers (VASPs) and any advertising platforms promoting virtual assets (VA) content across traditional and new-age media channels are required to ensure factual accuracy, to clearly demonstrate promotional intent, and to not mislead consumers about the guaranteed nature of their returns according to the report.
Before MVP licensees are operationalized, these regulations specifically address marketing and communications activities to protect community interests in information dissemination and consumer solicitation.
Kokila Alagh, the founder of KARM Legal Consultants, commented on the VARA's introduction of its advertising standards, saying that the regulatory framework will ensure that users have the necessary information before making decisions. The move, according to Crypto Oasis co-founder and CMO Faisal Zaidi, assures businesses in the digital assets sector to behave ethically, hence assisting in protecting customers and investors. The decision supports well Dubai ambition to become a global leader in cryptos, blockchains, and the metaverse is a positive sign said to Atul Hegde, the creator of YAAP, who is quoted in the paper.
About VARA :
VARA, which was founded in March 2022, is the sole independent virtual asset regulator in the world and has been tasked with developing a framework that would allow for borderless economic opportunity while maintaining market security.
The virtual asset industry in the emirate of Dubai and its free zone areas, apart from DIFC, is subject to licensing and regulation by VARA. It also manages all licensing requirements and requests for authorization of virtual asset activities under UAE legislation.
CBW - External Analyst