New crypto marketing rules launched in Dubai

From October 1, new guidance comes into effect for the marketing of cryptocurrencies, which will offer customers greater protection. 

Serving as the infrastructure that enables trading, holding, and transferring digital assets in Dubai, Virtual asset service providers (VASPs) will have to follow new rules about how they broadcast the services they provide. 

Issued by Dubai's Virtual Assets Regulatory Authority (VARA), the guidance covers the use of language in marketing materials, disclosure requirements, and the ethical considerations that should underpin all marketing efforts.

"The updated regulations place a strong emphasis on the accuracy of marketing communications, the avoidance of misleading information, and the protection of consumer interests," said a VARA spokesperson in a statement.

"They apply to all entities involved in marketing virtual assets or related activities, regardless of their licensing status with VARA."

Matthew White, CEO of VARA, added: "As the world’s first independent regulator for virtual assets, VARA is dedicated to creating a regulatory environment that not only protects consumers but also supports the growth and innovation of the virtual assets sector.”

VARA was established and is responsible for regulating, supervising, and overseeing virtual assets across Dubai, including Special Development Zones and Free Zones, but excludes Dubai International Financial Centre (DIFC).

The crypto community has welcomed the move. Tao Xiao is a partner at NH Management, a Dubai-based consulting firm that helps foreign companies, investors, and entrepreneurs grow their businesses in the Middle East.

"For investors, these guidelines are a big win. They’ll get more transparency about the risks involved in virtual assets, which means they can make smarter decisions. For crypto companies, though, it means tightening up their marketing strategies," she said. 

Geoffrey Dobson, a Dubai-based Real Estate Investment & Asset Management specialist, commented on LinkedIn: “Great to see the progress the UAE is making in yet another area of finance & investment.”

Peter Loo, who helped draft the guidelines while at VARA, wrote: “Great to see the revised marketing guidelines published! Glad to have made a small contribution here, and as you say, sometimes you get to do stuff that you hope turns out to be meaningful.”