Dubai’s Virtual Assets Regulatory Authority (VARA) has announced updated marketing guidelines for companies promoting virtual assets, marking an important step towards strengthening investor protection in the UAE.
The new rules, which come into effect from October 1, require companies to provide clear warnings about the risks associated with digital currencies.
Stricter marketing rules
The guidelines require all advertisements to prominently include a disclaimer stating that virtual assets “may lose all or part of their value” and are subject to “extreme volatility.” This approach aims to ensure that potential investors are aware of the risks before entering the often volatile crypto market.
VARA CEO Matthew White emphasized the importance of responsible advertising. He stated:
“By providing clear and actionable guidance, we support virtual asset service providers (VASPs) in delivering their services responsibly, while building trust and transparency in the market.”
Dubai’s new regulations reflect a broader trend among global regulators seeking to address concerns about misleading crypto advertising.
Countries such as Belgium, Singapore and Great Britain have recently taken similar measures. For example, in Belgium, crypto advertisements must include a disclaimer warning investors of the inherent risks, while the United Kingdom has banned “refer a friend” promotions in the sector.
Companies offering incentives for crypto-related products in the UAE must now receive confirmation of compliance from VARA. This ensures that promotional bonuses do not mislead or obscure the risks of investments.
The UAE’s progressive approach
The UAE has emerged as a global leader in the crypto space, driven by clear regulations and the establishment of the VARA in 2022, which has attracted crypto companies and talent.
A recent Chainalysis report highlighted the UAE’s diversified crypto ecosystem, which saw growth across all transaction sizes between July 2023 and June 2024, receiving more than $30 billion in crypto.
The country boasts the highest DeFi adoption in the MENA region, with DEXs handling 32.4% of transactions. Institutional interest, regulatory innovation and growing market activity have contributed to the rapid growth, making the UAE a major player in the global crypto landscape.