Picture for illustrative purposes only. ARCHIVE

Dubai's Virtual Assets Regulatory Authority (VARA) has unveiled new marketing rules for the promotion of virtual assets, which will come into effect on October 1. These rules aim to provide greater clarity for businesses and safeguard investors from the risks associated with cryptocurrencies. The updated regulations mandate that all firms marketing virtual assets must prominently include a disclaimer warning that "virtual assets may lose their value in full or in part and are subject to extreme volatility." This measure is intended to ensure potential investors fully understand the risks involved. Firms will also need to secure compliance approval from VARA, ensuring that incentives, such as bonuses or referral schemes, are not used to mislead investors about the inherent risks of virtual asset investments. According to VARA CEO Matthew White, these new measures reflect Dubai's commitment to fostering trust and transparency within the virtual asset market. "By offering clear and actionable guidance, we aim to help virtual asset service providers (VASPs) responsibly deliver their services while enhancing public confidence in the market," White explained. The UAE's efforts align with global trends, where countries such as the UK and Belgium have introduced similar rules. The UK has banned "refer a friend" schemes in the crypto space, and Belgium has implemented the tagline "The only guarantee in crypto is risk" on all related advertisements. Dubai's move to regulate crypto marketing is part of a broader effort to ensure responsible practices in the rapidly evolving digital asset industry, which has seen significant growth but also faces scrutiny over investor protection and transparency. ICA/Expat Media
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