Dubai’s VARA Issues Guidelines For Virtual Assets Marketing
Since the crypto industry began to gain traction, several nations have been working on regulations to guide the sector while giving room for growth. One country that is gradually becoming a hub for the crypto industry is Dubai.
According to recent reports, the country’s VARA (Virtual Asset Regulatory Authority) has issued guidelines to govern the promotion and advertising of virtual assets. The guidelines aim to prevent shady or scammy projects and to protect investors.
Dubai’s VARA Introduces Guidelines For Virtual Assets Advertising
Since cryptocurrency is getting popular in Dubai, the VARA decided to issue regulations for the promotion of these products. The new guidelines cover virtual assets’ marketing, advertising, and promotion activities.
The regulator noted that these guidelines would promote security while giving room for innovation. Also, all licensed VASPs (virtual assets service providers) in the region must abide by the new guidelines.
“The guidelines provide details on the duties of licensed VASPs in Dubai and all advertising platforms using the state’s media outlets targeting Dubai residents. This applies to both traditional and latest media channels. The aim is to ensure accuracy and removal of misleading information on promotional materials,” the report stated.
Also, the report noted that all forms of outreach, such as investor solicitation, awareness building, and customer engagement, are subject to the guidelines. The latest news adds to the government’s various initiatives in the crypto sector.
In 2022, Dubai has rolled out several crypto, metaverse, and blockchain initiatives. Moreover, the country’s regulators have issued licenses to various crypto firms to offer crypto services.
Is Dubai Gradually Becoming A Crypto Haven?
In recent months, various crypto and metaverse-based firms have set up offices in the country. The latest regulation by the state’s regulator is to protect investors.
According to most proponents in the crypto sector, the adoption and regulation of digital assets work together. Often, investors are drawn to regions with clear and proper rules for cryptocurrencies.
While some nations have been harsh in terms of crypto regulation, Dubai has been issuing favorable laws to keep their activities in check. This has helped to boost the growth of crypto in the region.
Kokila Alagh, the CEO of KARM Legal Consultants, commented on the latest guidelines by the VARA. Alagh believes these guidelines will help sensitize users on crypto’s benefits and risks.
Therefore, advertisements would give them the information they need to make the right decisions. Also, the executive of other licensed platforms was happy about the recent announcement.
Faisal Zaidi, the co-founder of Crypto Oasis, noted that policy-making is needed to increase the widespread adoption of these new technologies.
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