Dubai regulator tightens rules on crypto marketing
According to VARA CEO Matthew White, clear and actionable instructions enable crypto providers to perform responsible services.
Dubai’s digital asset regulator will impose stiffer regulations on organizations selling cryptocurrency investments in the nation. In a press statement issued to Cointelegraph, Dubai’s Virtual Asset Regulatory Authority (VARA) stated that enterprises marketing digital asset investments in the country should include a disclaimer in their materials. The crypto regulator stated that the disclaimer should be prominently displayed and indicate that “virtual assets may lose their value in full or in part and are subject to extreme volatility.”
VARA CEO Matthew White believes that offering clear and practical instructions can assist virtual asset service providers (VASPs) in “delivering their services responsibly.” According to White, this promotes market trust and openness. Furthermore, organisations giving incentives for digital assets or similar items in the country must obtain compliance confirmation from the authority. This ensures that incentives are not utilised to deceive investors about the hazards of possible investments.
Regulators to allow VARA-licensed providers to service broader UAE
The news follows a recent breakthrough that enables VARA-licensed crypto providers to expand their services to the larger UAE market. On September 9, VARA and the UAE’s central financial agency, the Securities And Commodities Authority (SCA), announced an agreement to mutually supervise VASPs. As a result, providers operating in Dubai who want to obtain a VARA licence can automatically register with the SCA, allowing them to serve the rest of the UAE.
His Excellency Helal Saeed Al Marri, head of VARA’s executive board, stated that the move displays regulatory consistency in the country. The official also highlighted that it drives forward their vision of a secure and interoperable virtual assets ecosystem.
UAE ranks third in global crypto adoption index
According to a survey undertaken by an investment migration consultant organisation, the UAE ranks third in a cryptocurrency adoption index. The country ranked high in tax friendliness, outperforming other countries on the list. The UAE also excelled in economics, innovation, and technology.
The study also found that a large proportion of the UAE’s population owns cryptocurrency. According to the experts, entrepreneurs thrive in the country, and the government’s support reflects the public’s passion for cryptocurrency.
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