Dubai will soon pursue a new licensing program for crypto space service providers, local regulators by introducing marketing and advertising rules for the industry.
The Dubai Virtual Assets Regulatory Authority (VARA), a cryptocurrency regulator, had proposed new guidelines on cryptocurrency marketing, advertising and promotions.
VARA talked about all forms of outreach, communication and publicity. This included disseminating information, raising awareness, engaging customers, and even soliciting investors, among others.
Once the guidelines are released, local virtual asset providers, including advertising platforms, will be required to maintain factual accuracy while disclosing any promotional intent so that investors and customers are not misled.
The aim will be to promote awareness, customer engagement and investor solicitation, among others. The guidelines given should cover all kinds of Virtual Asset Service Providers (VASPs).
These regulations address marketing and communications activities, before operationalizing MVP licensees so that any dissemination of market information and solicitation of consumers is designed to protect the interests of the community.
Targeting Crypto Clients in Dubai Market
The rules would also require all local virtual asset service providers (VASPs), including advertising platforms, to ensure factual accuracy and openly demonstrate any promotional intent to avoid misleading potential customers.
VARA had reported that these new guidelines would be linked to Dubai’s crypto-focused Minimum Viable Product (MVP) license, stating that,
The principles are complemented by rigid enforcement standards and penalties for non-compliance that collectively ensure market confidence ahead of MVP operations as they reinforce marketing, data protection and privacy laws. consumers who have been well integrated in the United Arab Emirates.
There were reports earlier that Sam Bankman-Fried’s FTX crypto exchange was one of the first companies to receive the MVP license from VARA.
This license was provided through the local subsidiary FZE in July 2022. This license allowed FZE to perform the operations in this particular region.
VARA is the world’s only independent regulator for digital assets that is responsible for creating an advanced framework that will facilitate borderless economic opportunity.
Moreover, VARA should create a framework without compromising market security.
The regulator was also responsible for licensing and regulating the digital asset market in Dubai and its free zone territories. VARA was created 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 aligns with the country’s overall economic strategy.
The Abu Dhabi Blockchain and Virtual Assets Committee had held its first meeting to discuss the strategy.
VARA is a regulator known for its upcoming industry regulatory plans, it bought land in virtual reality world The Sandbox in May.