VARA Issues Regulations Governing Virtual Asset Marketing and Advertising
The
Virtual Asset Regulatory Authority (VARA), in Dubai has unveiled digital asset
marketing and promotion regulations that apply to any entity using Dubai-based
media sites and publishing channels. The regulations will "ensure factual
accuracy, explicitly demonstrate any promotional intent, and in no way mislead
as to the guaranteed nature of their returns."
Guidelines Applicable to Dubai Licensed VASPs
The
Virtual Asset Regulatory Authority (VARA) Dubai recently announced the guidelines governing the marketing and promotion of digital assets. According
to the Khaleej Times, the regulations will provide a legal framework for
economic opportunities while maintaining security.
The
VARA regulations encompass "all forms of outreach, communications, and
advertising, including publication of information, awareness building, customer
engagement, and/or investor solicitation." They also extend to all virtual
assets related to marketing by any entity using Dubai-based media sites and
publishing channels that specifically target customers in Dubai.
The
report added: "Guidelines further detail the obligations of Dubai licensed
VASPs (virtual assets service providers) and any advertising platforms that are
positioning VA (virtual assets) content across traditional and new-age media
channels for the Dubai market, to ensure factual accuracy, explicitly
demonstrate any promotional intent, and in no way mislead on the guaranteed
nature of their returns."
User Guidelines to Ensure the Needed Information
Remarking
on the VARA’s advertising guidelines announcement, Kokila Alagh, the Founder of
KARM Legal Consultants, said the "regulations will go a long way in
ensuring that users have the needed information before making their
decisions." Faisal Zaidi, the Co-founder, and CMO at Crypto Oasis said the
announcement ensures companies in the digital assets industry act
appropriately, thus helping protect consumers and investors.
Atul Hegde, the Founder of YAAP, describes the report as one that "augurs well
for Dubai’s ambitions of being among the top global destinations for cryptos,
blockchain, and the metaverse."
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