Dubai's Virtual Asset Regulatory Authority Introduces Crypto Promotion Guidelines To Protect Investors

The independent agency required to regulate the crypto sector in Dubai, Virtual Asset Regulatory Authority (VARA), has brought new regulations for local crypto service providers.

According to a report from Gulf News last week, the VARA has introduced policies related to marketing, advertising and promotions of digital assets which will cover every form of outreach, communications and advertising, and will also include publication of "information, awareness building, customer engagement, and/or investor solicitation."

"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," the VARA said in a statement.

Additionally, the regulations surrounding crypto promotion will be levied on entities that target Dubai-based media sites, search platforms, and online or offline publishing channels to promote digital currencies or products related to them.

Interestingly, over the past few months, Dubai has become a safehouse for crypto investors and companies as well. The city and emirate in the United Arab Emirates (UAE) saw the implementation of the Virtual Assets Law under the leadership of UAE Prime Minister and ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum in March.

"Through the Virtual Assets Law, we seek to participate in the design of this new and rapidly growing global sector. Our step is a leap toward the future aimed at developing this sector and protecting all investors in it," the Prime Minister said in a Twitter post.

Meanwhile, many crypto exchanges have officially received in-principle approval from Dubai's VARA to operate in the country including Binance, the world's biggest cryptocurrency exchange. The exchange now operates as a broker-dealer in virtual assets in Dubai.

Another crypto exchange OKX was officially licensed by the VARA and it plans to open a regional hub at the Dubai World Trade Center to contribute to the expanding crypto sector in Dubai.