365Crypto
Given that the biggest crypto scam influencers have made Dubai their residence. Dubai’s Virtual Asset Regulatory Authority (VARA) has introduced new rules for companies marketing crypto investments. All firms promoting digital assets must now include a disclaimer in their ads, according to a recent announcement by VARA.
Warning on Crypto Volatility
The required disclaimer will inform potential investors that “virtual assets may lose their value in full or in part and are subject to extreme volatility.” This is part of VARA’s effort to ensure that consumers understand the risks before investing in crypto.
VARA CEO Matthew White stressed the importance of clear regulations. He believes that by providing actionable guidelines, crypto companies can operate more responsibly and build trust with consumers.
Rules for Incentives
In addition to the disclaimer, companies offering incentives tied to digital assets must get VARA’s approval. This ensures that any promotional offers are not misleading and don’t hide the potential risks of crypto investments.
Expanding Access for Licensed Firms
This news follows a recent agreement between VARA and the UAE’s Securities and Commodities Authority (SCA) to jointly supervise virtual asset service providers (VASPs). This agreement allows firms licensed in Dubai to operate throughout the UAE.
UAE’s Growing Crypto Scene
A study ranked the UAE third in global crypto adoption, thanks to its business-friendly tax policies and strong focus on technology. The country’s residents have shown significant interest in cryptocurrencies, with the government actively supporting the growth of crypto startups.
