Dubai’s Virtual Asset Regulatory Authority (VARA) which is the world’s one and only independent regulator for Virtual Assets (VA), started operations for the customised licensing regime this month. With the beginning of its Minimum Viable Product (MVP) Phase, VARA today has declared Regulatory Guidelines on Advertising, Marketing and Promotions of VA across the Emirate of Dubai.
The guidance reflects the objective of VARA to deliver a progressive framework which will be able to enable borderless economic opportunity, without jeopardizing market security, across the global VA industry. A part of the agreement was to nurture responsible industry participation. All these regulations particularly address marketing activities and communications activities, ahead of operationalising the MVP licensees because any mass-market data dissemination and consumer solicitation are all constructed to protect community interests.
Regulations on Advertising, Marketing and Promotions of Virtual Assets cover all types of outreach, advertising and communication, including publication of information, customer engagement, awareness building and/or investor solicitation.
[i] VARA rules are extended to VA-related communications by entities leveraging Dubai-based media sites, any search platforms, and online or off-line publishing channels that particularly target customers within the Dubai market, creating guardrails on acceptable audience segments, in addition to content obligations;
[ii] Equally all these content dissemination channels working from Dubai are ordered to act responsibly and guarantee compliance with accepted Guidance as it correlates to VA communications facilitated via their platforms;
[iii] Guidelines, more detail, the obligations of Dubai licensed VASPs and any advertising platforms which are putting VA content across every new and traditional media channel for the Dubai market, to make sure about factual accuracy, explicitly illustrate any promotional intent, and in no way misdirect the guaranteed nature of their returns. The principles are supplemented by strict enforcement criteria and penalties for non-compliance that all together provide market confidence ahead of MVP operations, as it augments data protection, marketing and consumer protection laws that have been well implanted across the UAE.
This marks the next phase in global VA ecosystem invention, targeting safe market adoption, and motivating credible industries to participate to drive the sustainability of Virtual Assets as an anchor in the future economy.