Companies in the United Arab Emirates will have to provide clear cautions about potential risks in their marketing materials pertaining to digital currency as of October 1. The goal of the new standards, which were unveiled by Dubai’s Virtual Assets Regulatory Authority (VARA), is to improve investor protection. One such measure is this one.
The purpose of the revised legislation is to guarantee that prospective investors are fully aware of the dangers involved with virtual assets. This is a major regulatory initiative to provide openness for the UAE’s expanding cryptocurrency market.
More stringent guidelines for advertising
All ads pertaining to cryptocurrencies must now prominently show disclaimers alerting viewers to the possibility that virtual assets could lose their value “in full or in part” and that they are vulnerable to “extreme volatility.” With this, the frequently deceptive character of some cryptocurrency marketing will hopefully be curbed, and before making any investments, customers will be made aware of the hazards.
“By offering clear and actionable guidelines, we are supporting virtual asset service providers (VASPs) in delivering their services responsibly while building trust and transparency in the market,” said Matthew White, CEO of VARA, emphasising the significance of these steps.
The UAE’s revised regulations are in line with a rising global movement to address worries about the encouragement of riskier cryptocurrency investments. Nations including Singapore, Belgium, and the UK have already put such policies into place. For instance, all cryptocurrency marketing in Belgium are required to include disclaimers about the risks associated with investing, while “refer a friend” incentives have been outlawed in the UK.
In an effort to better safeguard customers, VARA now mandates that businesses that provide bonuses or incentives for crypto-related goods get compliance permission. This guarantees that the risks associated with investing in digital assets are not concealed by these offerings.
The UAE Is a Leader in the Crypto Industry
Thanks to its well-defined legislative environment and the creation of VARA in 2022, the United Arab Emirates has established itself as a major global centre for the cryptocurrency sector. These elements have drawn a plethora of talent and cryptocurrency enterprises to the nation.
A recent Chainalysis analysis states that over $30 billion worth of cryptocurrency assets were exchanged between July 2023 and June 2024, indicating that the UAE’s crypto ecosystem is expanding quickly. The research also emphasised the nation’s leadership in decentralised finance (DeFi), with 32.4% of all cryptocurrency transactions in the region taking place on decentralised exchanges (DEXs). The nation’s role as a major player in the global cryptocurrency business has been cemented by its progressive laws, rising institutional interest, and heightened market activity.
