The Dubai Virtual Assets Regulatory Authority has announced that it will tighten the marketing rules for crypto assets starting next October.
In a step towards strengthening Transparency and investor protection, Dubai’s Virtual Assets Regulatory Authority (VARA) has announced updated marketing guidelines for virtual assets, with the new rules coming into effect from October 1.
According to the updated guidelines, companies wishing to market virtual assets in the UAE must include a “prominent” disclaimer stating that “virtual assets are subject to loss of value in whole or in part, and are subject to extreme volatility.”
The warning is intended to alert investors to the risks associated with investing in these assets, the regulator said Thursday, citing Bloomberg.
Enhancing trust and transparency in the market
VARA CEO Matthew White explained that the aim of these new guidelines is to provide clear and enforceable rules for virtual asset service providers.
“We believe these guidelines will help companies provide their services responsibly, while enhancing trust and transparency in the market,” White said.
Similar international moves
The UAE’s efforts are consistent with steps taken by other countries such as Belgium and Singapore in recent years in an attempt to curb misleading marketing of cryptocurrencies.
For example, the UK last year banned the industry’s popular “refer a friend” bonuses, while Belgium is now requiring clear disclaimers to be included in ads.
