Dubai’s regulator of virtual assets, the Virtual asset Regulatory authority (VARA) has recently announced the virtual assets marketing and promotions guidelines. The guidelines reflect the VARA’s mission to offer a legal framework that brings economic opportunities without compromising the market’s security.
The proposed guidelines encompass all forms of outreach, communication, and advertising. It includes awareness building, publication of information, customer engagement, and investor solicitation.
These regulatory guidelines also extend to all virtual assets associated with marketing via any entity using Dubai-based publishing channels and media sites that specifically target customers in Dubai.
The new guidelines relate to Dubai’s crypto-focused Minimal Viable Product (MVP) license. It stated, “These regulations specifically address marketing and communications activities, ahead of operationalizing the MVP licensees so that any mass-market information dissemination, and consumer solicitation are designed to safeguard community interests.”
The report also stated that guidelines also detail the obligations of Dubai’s licensed VASPs (Virtual Asset Service Providers) and any advertising platforms that are positioning virtual assets across the Dubai market.
It covers the content of all traditional and modern media channels to ensure factual accuracy, explicitly demonstrates any promotional intent, and in no way misleads on the guaranteed nature of their returns.
The founder of KARM Legal Consultants Kokila Alagh remarked that regulations will go a long way to ensure users have the required information before making any investment decisions. The co-founder and CMO of Crypto Oasis Faisal Zaidi, also said that the guidelines ensure firms in the digital asset industry act appropriately to help protect investors and customers.
The move marks Dubai’s ambitions of being among the top global hubs for crypto, blockchain, and the metaverse. Recently, the crypto exchange FTX’s Dubai subsidiary FTX FZE won Dubai’s first ‘MVP’ VASP license from VARA.
