Dubai Crypto Ads Must Include Risk Warnings Under New Rules

Dubai has introduced stricter regulations for marketing content related to cryptocurrencies. The Virtual Asset Regulatory Authority (VARA) announced new guidelines for Dubai crypto ads and the like. It requires all promotional materials for digital assets to carry a prominent disclaimer warning potential investors about financial risks.

According to VARA, compliance with all applicable laws and regulations is mandatory for all marketing activities related to virtual assets (VA). It is also inclusive of any VA activity targeting the UAE. This includes adherence to all laws, regulations, and guidelines in the UAE and its emirates, governing advertising, data protection, and consumer protection, as well as the specific marketing regulations as outlined.

Entities must also ensure they obtain and maintain any necessary approvals, permits, and licenses as required by the authorities. Furthermore, they must comply with any additional conditions communicated by VARA to the relevant entities from time to time.

Ensuring Responsible Marketing Practices for Dubai Crypto and Virtual Assets

Apart from this, VARA states that all marketing of VAs in or targeting the UAE must be fair, clear, and not misleading. It should be easily identifiable as promotional content. Marketing must not contradict key risks, such as the potential for VAs to lose value, be illiquid, or be subject to fraud or theft.

Statements that suggest investments are safe, low risk, or guaranteed must be avoided. Any urgency or “fear of missing out” tactics are prohibited. This is because it is the promotion of VA investments using credit unless the entity is licensed. Marketing must be responsible, ensuring only appropriate products are targeted to suitable audiences.

Third-party marketing arrangements must clearly disclose remuneration, and all incentives offered should not distract from the risks. Marketing of VAs must not include calls to buy or sell. It must feature disclaimers about volatility, and must not involve unsolicited transfers to VA wallets.

Entities must keep records of all marketing for at least eight years and ensure any third-party marketers adhere to these regulations. The entity remains responsible for compliance, and third parties are liable for breaches.

Dubai Advances Cryptocurrency Adoption with Landmark Court Ruling and New Custody Service

In a previous coverage, The Shib Daily reported that a Dubai court has cleared the way for payment in cryptocurrency to employees. It ordered that a dismissed employee receive their compensation in EcoWatt tokens.

Apart from this, The United Arab Emirates (UAE) has also bolstered its status as a global hub for digital finance. It recently launched Standard Chartered’s new digital asset custody service, announced via a press release.

This development follows the Dubai Financial Services Authority (DFSA) granting the license just over a year after both parties signed a memorandum of understanding in May 2023. Brevan Howard Digital, the crypto and digital asset division of Brevan Howard, is one of the primary clients of this new service. In a related move, a report noted that MENA has become a popular crypto space.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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