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 story, reflect the regulator’s goal to offer a legal framework that fosters economic opportunities without jeopardizing the security of the market.
The VARA principles cover “all types of outreach, communications, and advertising, including publication of information, awareness raising, customer involvement, 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 situated 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.
Before Making A Decision, Guidelines Make Sure Users Get The Information They Need
Kokila Alagh, the founder of KARM Legal Consultants, commented on the VARA’s introduction of its advertising standards, saying that the regulations will go a long way in ensuring that users have the relevant information before making their judgments. The move, according to Crypto Oasis co-founder and CMO Faisal Zaidi, assures businesses in the digital assets sector to behave ethically, hence assisting in protecting customers and investors.
The decision augurs well for Dubai’s aims to be among The top worldwide locations for cryptos, blockchain, and the metaverse, according to Atul Hegde, the creator of YAAP, who is quoted in the paper.