Dubai will soon pursue a new licensing program aimed at crypto space service providers and local regulators by introducing marketing and advertising rules for the industry.
Dubai’s Virtual Assets Regulatory Authority (VARA), a regulator of cryptocurrencies, had proposed new guidelines for the marketing, advertising and promotion of cryptocurrencies.
VARA spoke about all forms of public relations, communication and advertising. This included disseminating information, raising awareness, retaining customers, and even promoting investors, among other things.
After the guidelines are issued, local virtual asset providers, including advertising platforms, must maintain factual accuracy and disclose all advertising intent so as not to mislead investors and customers.
The aim will be, among other things, to raise awareness, address customers and attract investors. The guidelines given are intended to cover all types of Virtual Asset Service Providers (VASPs).
mentioned VARA,
These regulations relate to marketing and communication activities before the MVP licensees are operationalized, so any dissemination of market information and consumer advertising is intended to protect the interests of the community
Targeting crypto customers in the Dubai market
The rules also reportedly require all local Virtual Asset Service Providers (VASPs), including advertising platforms, to ensure factual accuracy and openly demonstrate any advertising intent to avoid misleading potential customers.
The VARA had reported that these new policies would be tied to Dubai’s crypto-focused MVP (Minimal Viable Product) license, stating that
The principles are complemented by strict enforcement standards and penalties for non-compliance, all of which create market confidence ahead of MVP operations as they extend marketing, privacy and consumer protection laws that are well entrenched in the UAE.
There were earlier reports that Sam Bankman-Fried’s crypto exchange FTX was one of the first companies to receive VARA’s MVP license.
This license was provided by local subsidiary FZE in July 2022. This license has enabled FZE to conduct the operations in that particular region.
VARA is the world’s only independent regulator of digital assets, responsible for creating a progressive framework designed to enable limitless economic opportunity.
In addition, VARA should create framework conditions without jeopardizing market security.
The regulator was also responsible for licensing and regulating the digital asset market in Dubai and its free zone areas. VARA was founded in 2022.
Abu Dhabi’s new strategy for blockchain and virtual assets
The guidelines provided by VARA came after Abu Dhabi’s new plans to launch a blockchain and virtual assets strategy that is in line with the country’s overall economic strategy.
The Abu Dhabi Blockchain and Virtual Assets Committee held its first meeting to discuss the strategy.
VARA is a regulator known for its forward-thinking regulatory plans for the industry and bought land in virtual reality world The Sandbox in May.
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