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The new guidelines for marketers cover various topics such as appropriate language usage, specific disclosure requirements, and ethical marketing considerations.
Key Notes
Dubai has introduced new regulations for companies promoting digital assets, requiring them to disclose the risks associated with crypto trading to protect consumers.Starting October 1, all crypto promotions in Dubai, must include a disclaimer warning of potential losses and extreme volatility.Dubai, a prominent city in the United Arab Emirates (UAE), has tightened its crypto regulation by introducing stricter rules for companies promoting digital assets in the region.
On Thursday, September 26, the Dubai Virtual Assets Regulatory Authority (VARA) announced the new Marketing Regulations for Virtual Assets and Related Activities 2024. These regulations require firms to disclose the risks involved in trading cryptocurrencies in their promotional materials to better educate traders about the inherent volatility of digital assets.
Transparency and Ethical Marketing
The new guidelines cover various topics, including appropriate language usage in marketing materials, specific disclosure requirements, and the ethical considerations that should underpin all marketing efforts.
Starting from October 1, 2024, all crypto companies in Dubai, regardless of their regulatory status, must include a bold disclaimer in their promotions, both online and offline, stating:
“Virtual assets may lose their value in full or in part and are subject to extreme volatility.”
In addition to the disclaimer, VARA requires local and offshore businesses to provide accurate information on promotional materials to ensure users make informed investment decisions.
The move aims to improve transparency and integrity in the marketing practices within the virtual assets sector in the region.
For companies that may violate the new rules, the authorities have warned that misleading investors with false information may result in significant penalties.
A Comprehensive Regulatory Framework
Dubai began its crypto regulatory regime in 2023 when VARA introduced a comprehensive framework to establish a structured approach to the use and treatment of digital assets.
The regulations cover various aspects of the industry, including advisory services, broker-dealer services, custody services, exchange services, lending and borrowing services, management and investment services, and transfer and settlement services.
With this framework in place, the authorities have now extended their rules to marketers to ensure that all aspects of the crypto economy are fully regulated to protect consumers.
Matthew White, the CEO of VARA, emphasized that the new marketing regulations aim to help crypto exchanges in Dubai better serve their customers.
“Our updated marketing regulations and the newly issued guidance document reflect our commitment to maintaining Dubai’s position as a global leader in digital finance. By providing clear and actionable guidance, we can help VASPs deliver their services responsibly while fostering greater trust and transparency in the market,” he said.
Not the First
The new Marketing Regulations for Virtual Assets and Related Activities 2024 introduced by the Dubai regulator follow a broader trend in the industry.
Financial watchdogs in countries like Belgium and Singapore have taken similar approaches to tighten crypto marketing rules and prevent the dissemination of misleading information to protect consumers from making uninformed investment decisions.
In November last year, the UK’s Financial Conduct Authority (FCA) published its own guidelines for crypto marketing. According to these rules, companies promoting crypto assets purported to be backed by a commodity must provide sufficient evidence to support their claims.
Additionally, the authorities have banned ‘refer a friend’ bonuses, which are often used by companies to attract new users.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
