Dubai imposes regulations on promotional methods adopted by crypto firms. The Dubai Virtual Asset Regulatory Authority (VARA)is determined to monitor crypto asset providers to ensure they don’t include unrealistic returns in their advertisements. Often scammers resort to ads that guarantee an amount of investment; the step aims at curbing such scams.
VARA’s guidelines for Dubai crypto service providers
As reported by Gulf News, VARA’s regulations are not limited to advertising but spread across investor solicitation, awareness building, outreach, sharing of information and customer engagement. Whether offline or online marketing crypto products, the Dubai-based firms must align with the legal obligations.
The rules and norms fixed by the authorities clearly state that any promotional material circulating fake and misleading information can face prosecution. Crypto service providers must maintain transparency when advertising their products.
In Dubai, FTX, a crypto exchange, became the first firm to get VARA’s license which helped them to run their advertising campaigns securely and smoothly. The country’s major regulatory step indicates how the government is paving the path for crypto adoption by ensuring safety for investors.
VARA safeguarding crypto investors
Dubai is gradually becoming center stage in crypto and metaverse. The UAE government has been planning to become a globally acclaimed country in digital assets, leading them to form a regulatory body like VARA. To drive innovation safely, the Virtual Asset Regulatory Authority was formed to ensure a safe environment for the digital asset community. Primarily the body supervises virtual sectors across the country for smooth functioning.
Besides keeping track of crypto firms’ information sharing practices, the authorities are held responsible for providing and approving digital products and services licenses.
Undoubtedly, digital assets are leading to pathbreaking innovations. However, certain amounts of risk pose a threat to this emerging sector. Many countries like UAE have taken vital steps toward binding crypto assets with a legal obligation to curb their misuse.
Hopefully, Virtual Asset Regulatory Authority will help protect investors staking their hard-earned money on digital assets.