Dubai’s Virtual Assets Regulatory Authority (VARA) has announced updated marketing guidelines for companies promoting virtual assets, marking an important step towards strengthening investor protection in the UAE .
The new rules, which came into force on October 1, will require companies to provide clear warnings about the risks associated with digital currencies.
Stricter marketing rules
The guidelines require all advertisements to prominently carry a warning that virtual assets “may lose their value in whole or in part” and are subject to “extreme volatility.” This approach aims to ensure that potential investors are aware of the risks before committing to the often volatile crypto market.
VARA CEO Matthew White highlighted the importance of responsible advertising. He declared:
“By providing clear and concrete guidelines, we help virtual asset service providers (VASPs) provide their services responsibly while building trust and transparency in the market. »
Dubai’s new regulations reflect a broader trend among global regulators seeking to address concerns about misleading cryptocurrency advertising.
Countries such as Belgium, Singapore and the United Kingdom have recently adopted similar measures. In Belgium, for example, crypto advertisements must carry a disclaimer warning investors of the inherent risks, while the UK has banned “refer a friend” promotions in the sector.
Companies offering incentives for crypto-related products in the UAE must now receive confirmation of compliance from VARA. This ensures that promotional bonuses do not mislead or mask the risks of investments.
The UAE’s progressive approach
The UAE has become a global leader in crypto, thanks to clear regulations and the creation of VARA in 2022, which has attracted crypto companies and talent.
A recent Chainalysis report highlighted the UAE’s diverse crypto ecosystem, which saw growth across all transaction sizes and received over $30 billion in crypto between July 2023 and June 2024.
The country has the highest adoption of DeFi in the MENA region, with DEXs processing 32.4% of transactions. Institutional interest, regulatory innovation and expanding market activity have contributed to rapid growth, making the UAE an important player in the global crypto landscape.
