Dubai’s Virtual Asset Regulatory Authority (VARA) is implementing stricter rules for companies marketing digital assets and crypto investments within the country. The new regulations require that companies clearly disclose the risks of investing in virtual assets, with the goal of ensuring greater transparency and investor protection in Dubai’s rapidly expanding crypto market.
New Disclosure Requirements
According to a press release from VARA, all companies promoting digital asset investments must include a prominent disclaimer on their marketing materials. The disclaimer must state that virtual assets are highly volatile and could lose their value in full or in part, alerting investors to the significant risks involved.
Matthew White, CEO of VARA, explained that the new guidelines are designed to provide clear and actionable advice to digital asset service providers (VASPs), helping them deliver their services responsibly. This move is seen as a critical step in enhancing trust and transparency in the growing virtual asset space.
By implementing these guidelines, VARA aims to ensure that crypto providers are not misleading investors, especially in light of the extreme volatility that often accompanies digital asset investments. The new rules are part of an ongoing effort to foster a responsible crypto ecosystem within Dubai and the broader UAE.
Stricter Rules for Incentives and Compliance
In addition to the disclosure requirements, VARA has introduced new measures for companies offering incentives or promotions related to digital assets. Providers who wish to offer such incentives must now obtain compliance confirmation from VARA to ensure that these incentives are not being used to mislead potential investors. This step further strengthens the regulator’s commitment to ensuring that advertising and marketing of crypto investments are done in a responsible and transparent manner.
Expanding Crypto Services Across the UAE
The tightening of rules comes shortly after a significant development that allows VARA-licensed crypto providers to expand their services beyond Dubai and into the broader UAE market. On Sept. 9, VARA and the Securities and Commodities Authority (SCA), the UAE’s federal financial regulator, announced an agreement for the mutual supervision of VASPs.
This agreement allows crypto providers licensed by VARA to register with the SCA, which in turn enables them to operate across the entire UAE. Helal Saeed Al Marri, Chairman of VARA’s executive board, hailed the agreement as a step toward regulatory cohesion within the country, helping to create a secure and interoperable virtual assets ecosystem.
UAE’s Growing Crypto Landscape
The tightening of rules for crypto marketing comes as the UAE continues to emerge as a global leader in cryptocurrency adoption and innovation. A recent study conducted by an investment migration consultancy firm ranked the UAE third in its global crypto adoption index. The country earned high marks for tax-friendliness, economic factors, innovation, and technological infrastructure, all of which have contributed to the country’s thriving crypto ecosystem.
Additionally, the study found that a large percentage of the UAE population owns cryptocurrency, with the government actively supporting the growth of startups in the sector. This support aligns with the country’s ambition to become a leading hub for digital assets and blockchain technology.
Conclusion
As Dubai and the broader UAE continue to strengthen their position as a global crypto hub, VARA’s new regulatory measures reflect the country’s commitment to ensuring consumer protection, transparency, and responsible growth in the crypto sector. By requiring clearer disclosures and more stringent compliance on promotional incentives, VARA is setting the stage for a more secure and stable digital asset market in the UAE. These changes are also part of a broader push to create a trusted regulatory framework that balances innovation with investor safeguards, positioning the UAE as a key player in the future of cryptocurrency.
