Dubai will soon be pursuing a new license program directed towards the crypto space service providers, local regulators by introducing marketing and advertising rules for the industry.
Dubai’s virtual asset regulatory authority (VARA), a cryptocurrency regulatory had proposed for new guidelines on marketing, advertising and promotions of cryptocurrencies.
VARA has mentioned about all forms of outreach, communications along with advertising. This included the distribution of information, building awareness, customer engagement and even investor solicitation among others.
After the the guidelines have been issued, the local virtual asset providers including advertising platforms will be needed to maintain factual accuracy along with revealing any promotional intent so that investors and customers are not decieved.
The goal will be to promote awareness, engage customers and investor solicitation among others. The given guidelines shall be covering all sorts of virtual asset service providers (VASPs).
VARA mentioned,
These regulations address marketing and communications activities, ahead of operationalising the MVP licensees so that any market information dissemination, and consumer solicitation are designed to safeguard community interests
Targeting Crypto Customers Within The Dubai Market
The rules reportedly also require all local virtual asset service providers (VASPs), including advertising platforms, to ensure factual accuracy and openly demonstrate any promotional intent to avoid misleading potential customers.
The VARA had reported that these new guidelines shall be tied to Dubai’s crypto-focused Minimal Viable Product (MVP) license, stating that,
The principles are supplemented by rigid enforcement standards and penalties for non-compliance that collectively provide market confidence ahead of MVP operations, as it augments marketing, data protection and consumer protection laws that have been well embedded across the UAE.
There were reports earlier that Sam Bankman-Fried’s FTX crypto exchange was one of the first comapnies to have recieved VARA’s MVP license.
This license was provided through the local subsidiary FZE in July 2022. This license has allowed FZE to carry out the operations in that particular region.
VARA is the world’s only independent regulator for the digital assets that is reposnsible for creating an advanced framework which shall facilitate borderless economic opportunity.
Additionally, VARA is expected to create a framework without compromising market security.
The regulator is also was responsible for licensing and regulating the digital asset market in Dubai and its free zone territories. VARA was estabilished in the year 2022.
Abu Dhabi’s New Strategy For Blockchain And Virtual Asset
The guidelines provided by VARA came after Abu Dhabi’s new plans to launch a strategy for blockchain and virtual assets which is in alignement with the country’s overall economic strategy.
The Abu Dhabi Blockchain and Virtual Assets Committe had held its first meeting to discuss the strategy.
VARA is a regulator that is known for its forward coming industry regulations plans, it purchased land in the virtual reality world The Sandbox in May.
Featured image from UnSplash, Chart from TradingView.com