Dubai’s Virtual Asset Regulatory Authority (VARA) reportedly instructed local cryptocurrency-related firms to require a license from the watchdog before advertising their products. The initiative could secure maximum protection for investors and limit the spread of misleading marketing campaigns focused on digital assets.
Over the past several months, Dubai has emerged as a global cryptocurrency center where numerous companies and leading players set foot. Sam Bankman-Fried’s spearheaded trading venue – FTX – established a regional headquarter in the city, while CryptoCom and OKX received licenses to offer services in the region.
Users’ Safety Is VARA’s Concern
The United Arab Emirates, and more specifically Dubai, have been making gradual steps toward the digital asset industry recently. In March this year, the country’s authorities created an independent agency to monitor the crypto sector, called the Virtual Asset Regulatory Authority (VARA).
“Our step is a leap towards the future aimed at developing this sector and protecting all investors in it,” Prime Minister Sheikh Mohammed bin Rashid Al Maktoum said at the time.
According to a coverage by Gulf News, the entity doubled down on its duties by introducing regulatory guidelines on firms that advertise crypto products and services, including search platforms, media sites, and online or offline publishing channels that urge people to dive into the ecosystem.
Such organizations now have to obtain a license from the VARA to ensure their operations are not harmful to investors.
“These regulations specifically address marketing and communications activities ahead of operationalizing the MVP licensees so that any mass-market information dissemination and consumer solicitation are designed to safeguard community interests,” the statement reads.
Dubai and Crypto
The examples of Dubai’s pro-crypto stance are numerous. Several months ago, the city’s authorities granted Binance and CryptoCom provisional licenses to operate their businesses in the area. For its part, FTX received a regulatory approval to establish a regional headquarter in Dubai.
In May, the UAE’s leading airline company – Emirates Airline – revealed intentions to introduce bitcoin as a payment method. COO Adel Ahmed Al-Redha said the company will also leverage blockchain technology to trace records of aircrafts.
Subsequently, the city hosted somewhat bizarre events in the crypto world. Three months ago, the French Florian Ughetto and the Paraguayan Liz Nunez got married in the Metaverse (the first such event for Dubai). The couple explained they wanted to gather all their friends and family for the wedding and the virtual reality was the only spot where this could have happened.