Dubai’s VARA Unveils Update to Marketing Rules and Issues New Guidance for VASPs
Dubai’s VARA Unveils Update to Marketing Rules and Issues New Guidance for VASPs
The Virtual Assets Regulatory Authority, a Dubai regulator of virtual assets, has published a notice with key updates on its existing marketing regulations addressed to Virtual Assets Service Providers operating in the Emirates. This update will become effective on October 1.
New Marketing Guideline Document for VASPs
The newly issued “Marketing Guidance Document” by VARA forms part of the core updates. This online resource shall assist Virtual Asset Service Providers with the marketing of their services within Dubai to the highest possible standards by ensuring accuracy, ethics, and transparency in all communications. It provides comprehensive directions on how to conduct marketing in a manner that complies with the tight requirements of the regulator.
Stricter Regulations Against Misleading Information
New regulations also focus on not misleading information and on making full disclosures in marketing communications. This will be across the board, from Licensed VARA entities to unlicensed ones, marketing virtual assets or related activities in Dubai. In this way, VARA can instill more confidence and better transparency into the virtual asset market.
Uniform Rules for Licensed and Unlicensed Entities
Under these regulations, the licensed and unlicensed will have to operate under the same standards, at least with regard to marketing. This uniformity in treatment is designed to level the playing field and protect consumer interests. From appropriate language usage to the mandatory inclusion of risk disclosures, it is an all-encompassing set of regulations.
Heavy Fines for Non-Compliance
Any kind of non-compliance from any entity regarding the new marketing rules might attract serious penalties. The fines can go up to 10,000,000 AED ($2.7 million), reflecting VARA’s strong determination to keep the virtual assets space intact in Dubai.
A Global Leader in Digital Finance
As the world’s first independent regulator for virtual assets, VARA is committed to delivering a regulatory environment that will protect consumers, while supporting the sector of virtual assets in its growth and innovation,” said Matthew White, Chief Executive Officer of VARA. He added that this further revision of the regulations, together with the new guidance document, are crucial steps toward ensuring that Dubai continues to lead the way in the field of digital finance.
Industry Hails Dubai’s Regulatory Framework
The CEO of Binance, Richard Teng, while speaking on the panel discussion during Korea Blockchain Week – KBW2024, praised Dubai and its regulatory framework for digital assets, naming VARA something aspirational for the industry. He underlined that VARA tries to achieve a balance between nurturing innovation with “robust consumer protection”.
With these updated regulations, Dubai’s VARA is reiterating its pledge toward ethical marketing and consumer protection in the ever-evolving virtual assets frontier. It brings clarity with high standards, through which VARA intends to contribute to the long-term development of the industry while further securing Dubai’s status as an international powerhouse in digital finance.
