VARA introduces regulations to protect consumers and ensure clear risk disclosures in digital asset promotions.
Dubai's Virtual Asset Regulatory Authority (VARA) has announced new regulations for crypto marketing, which will take effect on October 1. These rules are designed to ensure transparency and protect consumers in the rapidly growing digital asset market.
The new guidelines require companies to include clear disclaimers about the volatility and potential loss of value associated with digital assets. This means that any marketing material must inform potential investors about the risks involved, helping them make informed decisions.
VARA CEO Matthew White highlighted the importance of these regulations in fostering trust and transparency within the crypto sector. By providing clear guidance, VARA aims to build a more reliable environment for both businesses and consumers.
Companies offering incentives must now obtain compliance confirmation to ensure they are not misleading investors. This step is crucial in protecting consumer interests and maintaining the integrity of the market.
The 'Marketing Guidance Document' issued by VARA outlines detailed instructions for virtual asset service providers (VASPs) on how to market their services compliantly. These guidelines apply to all entities involved in virtual asset marketing, regardless of their licensing status, promoting a standardized approach across the industry.
