The Virtual Asset Regulatory Authority (VARA), Dubai’s virtual asset regulator, has released guidelines for digital asset marketing and promotion that are applicable to any entity using media outlets and publishing channels based in Dubai. The rules “ensure factual accuracy, explicitly demonstrate any promotional intent, and in no way misrepresent the guaranteed nature of their returns,” according to the statement.
Guidelines Applicable to Dubai Licensed VASPs
The Virtual Asset Regulatory Authority (VARA), Dubai’s virtual asset regulator, recently released the rules governing the marketing and promotion of digital assets. The regulations, according to a Khaleej Times report, reflect the regulator’s goal to provide a legal framework that fosters economic opportunities without jeopardizing the security of the market.
The VARA guidelines cover “all forms of outreach, communications, and advertising, including publication of information, awareness raising, customer engagement, and/or investor solicitation,” according to the report. They also cover any virtual assets used by any organization to market to customers in Dubai specifically through media outlets and publishing channels based in Dubai.
“Guidelines further detail the obligations of Dubai licensed VASPs [virtual assets service providers] and any advertising platforms that are positioning VA [virtual assets] content across traditional and new-age media channels for the Dubai market,” the report continued. “These obligations include ensuring factual accuracy, explicitly demonstrating any promotional intent, and in no way deceiving on the nature of their returns, which are not guaranteed.”
Guidelines Ensure Users Get Needed Information Before Making a Decision
Kokila Alagh, the founder of KARM Legal Consultants, commented on the VARA’s announcement of its advertising guidelines, saying that the “regulations will go a long way in ensuring that users have the needed information before making their decisions.” The announcement, according to Crypto Oasis co-founder and CMO Faisal Zaidi, ensures businesses in the digital assets sector behave ethically, thereby assisting in protecting customers and investors.
The move “augurs well for Dubai’s ambitions to be among The top global destinations for cryptos, blockchain, and the metaverse,” according to Atul Hegde, the founder of YAAP, who is quoted in the report.