Dubai regulator tightens rules on promoting cryptocurrency services

Crypto companies have been required to accompany their investment products with a risk disclaimer

26.09.2024 - 14:20

189

3 min

What’s new? The Dubai Virtual Assets Regulatory Authority (VARA) has tightened the rules for promoting services related to virtual assets. Officials have required companies to include a disclaimer that will explain the risks associated with crypto investments.

Material by Bloomberg

What else is known? Starting October 1, companies operating in the UAE will be required to add a prominent disclaimer to their websites that reads, “virtual assets may lose their value in full or in part, and are subject to extreme volatility.”

VARA CEO Matthew White believes that the new rules will not only build customer trust and market transparency, but will also help crypto asset service providers do business more responsibly.

Previously, many countries around the world, including Belgium and Singapore, have also tightened marketing rules for crypto companies, requiring them to add risk disclosure labels to their products. The UK, in addition, banned referral programs in 2023 that rewarded users of exchanges for inviting friends.

VARA was established in March 2022. The Authority is in charge of licensing cryptocurrencies and crypto companies with local branches. The emirate and the country as a whole are known for their positive attitude towards the crypto industry, with many major firms including Binance, OKX, Kraken, and Crypto.com exchanges having licenses to operate here.

Crypto exchange M2 launches a feature to buy BTC and ETH for fiat in the UAE

The platform is licensed to operate within the Abu Dhabi International Financial Center

VARA has also begun to explore ways to reduce the financial cost of compliance for smaller crypto firms, and in June, financial regulator DFSA authorized trading in shares of foreign cryptocurrency exchange-traded funds (ETFs).

At the same time, back in early 2023, VARA decided to ban anonymous cryptocurrencies such as Zcash and Monero. Their use in Dubai is punishable by fines for both individuals and legal entities.

Author: