Dubai is one country that is rapidly growing into a crypto industry epicenter. As the cryptocurrency market has gained pace, many countries have been working on legislation to help direct the industry while still allowing for its expansion.
Recent news articles state that rules for the advertising and promotion of virtual assets have been issued by the VARA (Virtual Asset Regulatory Authority) in the country. The rules are meant to safeguard investors from being duped by fraudulent projects.
Advertising of Virtual Assets Is Regulated By Dubai’s Virtual Assets Regulatory Authority (VARA).
The VARA has issued guidelines for the marketing of virtual currencies like Bitcoin and Ethereum because to the industry’s growing popularity in Dubai. The promotion, advertising, and marketing of virtual assets are all covered by the new rules.
The regulating body said that the new regulations would allow for creativity while bolstering safety. Additionally, all VASPs (virtual assets service providers) operating in the region are required to follow the new regulations.
The rules spell out the responsibilities of all advertising networks that reach Dubai citizens through the state’s media outlets, including VASPs that have been granted a license in the emirate. This is true of both classic and cutting-edge forms of media. The purpose of this report is to verify promotional materials are accurate and any false or misleading information is removed.
The report also stated that the standards apply to all forms of outreach, including but not limited to investor solicitation, awareness development, and customer involvement. The most recent developments complement the government’s existing crypto-related programs.
Several crypto, metaverse, and blockchain projects were launched in Dubai in 2022. Additionally, crypto companies in the country can now legally provide their services thanks to licenses issued by government bodies.
Is Dubai Evolving Into A Cryptocurrency Safe-Haven?
Many cryptocurrency and metaverse-focused businesses have opened shop there in recent months. The state’s latest regulation is aimed at safeguarding investors.
The majority of crypto enthusiasts believe that digital currency adoption and regulation go hand in hand. When looking to invest, many people are drawn to countries that have established regulatory frameworks for cryptocurrencies.
Dubai, in contrast to other countries’ strict crypto regulation, has issued legislation that are more lenient toward the industry while yet ensuring that it is able to function normally. This has aided the expansion of crypto in the area.
KARM Legal Consultants CEO Kokila Alagh offered some thoughts on the VARA’s new regulations. The benefits and pitfalls of cryptocurrency are something Alagh feels these rules will help consumers become more aware of.
Therefore, individuals would be able to make educated choices thanks to the information provided by commercials. In addition, the announcement has been well received by the executive of other licensed platforms.
In order to facilitate more widespread use of these new technologies, Faisal Zaidi, co-founder of Crypto Oasis, has called for the establishment of appropriate policies.