Dubai’s Virtual Assets Regulatory Authority (VARA) has recently announced updated marketing guidelines for firms promoting virtual assets, signaling a significant move towards enhancing investor protection in the UAE. Effective from October 1st, the new rules will require companies to provide clear warnings about the risks associated with digital currencies.
Under the new guidelines, all advertisements must prominently feature a disclaimer stating that virtual assets “may lose their value in full or in part” and are subject to “extreme volatility.” This measure is aimed at ensuring that potential investors are fully informed about the risks before entering the often volatile crypto market.
VARA CEO Matthew White has stressed the importance of responsible advertising, stating that by offering clear and actionable guidelines, they are supporting virtual asset service providers (VASPs) in delivering their services responsibly while fostering trust and transparency in the market.
The introduction of these stricter marketing rules in Dubai reflects a broader global trend among regulators seeking to address concerns over misleading crypto advertising. Countries like Belgium, Singapore, and the UK have recently implemented similar measures. For instance, in Belgium, crypto ads must carry a disclaimer warning investors of the inherent risks, while the UK has prohibited “refer a friend” promotions in the sector.
In the UAE, companies offering incentives for crypto-related products must now obtain compliance confirmation from VARA. This ensures that promotional bonuses do not mislead or obscure the risks associated with investments.
The UAE has established itself as a frontrunner in the global crypto space, driven by clear regulations and the establishment of VARA in 2022, which has attracted crypto businesses and talent to the region. According to a recent Chainalysis report, the UAE boasts a diverse crypto ecosystem that saw growth across all transaction sizes and received over $30 billion in crypto between July 2023 and June 2024.
The country also leads the MENA region in DeFi adoption, with decentralized exchanges (DEXs) handling 32.4% of transactions. The combination of institutional interest, regulatory innovation, and expanding market activity has propelled rapid growth, positioning the UAE as a key player in the global crypto landscape.