With the start of its Minimum Viable Product (MVP) Phase, Dubai’s Virtual Asset Regulatory Authority (VARA) has released Regulatory Guidelines on marketing, advertising, and promotions of VA across the Emirate of Dubai.
Prior to the MVP licensees being operational, the new VARA rules mainly target marketing and communications operations to ensure that any mass-market information distribution and consumer solicitation are intended to protect community interests.
Prior Steps in Regulating Virtual Assets
Today, we approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the UAE’s position in this sector. The Authority will cooperate with all related entities to ensure maximum transparency and security for investors. pic.twitter.com/LuNtuIW8FM
— HH Sheikh Mohammed (@HHShkMohd) March 9, 2022
It follows the announcement in March by the United Arab Emirates vice president and prime minister approving a law on virtual assets and creating the Dubai Virtual Assets Regulatory Authority.
All types of outreach, communication, and promotion are covered under the Regulations on Marketing, Advertising, and Promotions of Virtual Assets, including information dissemination, awareness raising, customer involvement, and investment solicitation.
VARA regulations set boundaries on acceptable audience segments in addition to content requirements for VA-related communications by any entity utilizing media outlets, search engines, and online or offline publishing channels with a Dubai presence that explicitly targets consumers within the Dubai market.
Equally, all content distribution platforms based in Dubai must behave responsibly and ensure that the Guidance is followed with regard to VA messages made possible by their platforms.
I look forward to better regulation. I believe that rules will create an environment for crypto companies to thrive and investors to feel protected. #Dubai is way ahead by creating its Virtual Assets Regulatory Authority.
#Crypto #Currencies #MiddleEast #investor (3/3)
— Frederico Fernandes (@FreddyMadeira) April 29, 2022
The VARA guidelines also outline the responsibilities of Dubai licensed VASPs and any advertising platforms positioning VA content for the Dubai market across traditional and new-age media channels, including the need to ensure factual accuracy, clearly state any promotional intent, and refrain from in any way deceiving consumers about the certainty of their returns.
In addition to the marketing, data protection, and consumer protection rules deeply ingrained in UAE legislation, the principles are complemented by strict enforcement requirements and penalties for non-compliance, which create market trust prior to MVP operations.