Dubai is set to control crypto aldvertising and promotions.
Dubai’s Virtual Asset Regulatory Authority (VARA), responsible for licensing and regulating the crypto sector, has reportedly released a set of guidelines for crypto advertising, promotions, and marketing.
The VARA was established in March of 2022 as Dubai's independent Virtual Asset regulator. The authority deals with creating legal frameworks to protect investors and create standards for the Virtual Asset industry. The new marketing and advertising guidelines are the latest project of the authority.
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According to the news report shared by local news portal Gulf News, the new regulations cover all aspects of communication, including “publication of information, awareness building, customer engagement, and/or investor solicitation”.
Moreover, it focuses not only on how but also on where the information can be published. The guidelines distinguish rules for “Dubai-based media sites, search platforms, and online or off-line publishing channels”, which targets customers of the Dubai crypto market.
The VARA notes that the new regulations are designed to protect users from misleading information. Virtual asset service providers must provide factual data, clearly and comprehensively present promotional messages. Companies are also obliged not to promise or guarantee customers any returns.
The guidelines highlight that, while promoting something, crypto companies should ensure the fluidity and truthfulness of the information.
The VARA also mentions that the new regulations are connected with Minimal Viable Product (MVP) licenses:
These regulations specifically address marketing and communications activities, ahead of operationalizing the MVP licensees so that any mass-market information dissemination and consumer solicitation are designed to safeguard community interests.
Dubai, one of the biggest crypto hubs in the Middle East, is expanding its list of blockchain companies. On July 19th, the city announced that it is planning to create around 40K virtual jobs by 2030.