Widespread adoption has been in the cards for the crypto-verse. Many prominent platforms, businesses, and governments have welcomed crypto openly. Dubai, in particular, has been emerging as a hotspot for the crypto industry. From legally making way for several crypto businesses to set up shop to the government’s interest in the metaverse, Dubai is undoubtedly a crypto lover’s destination. It is quite pertinent for governments to be wary of scammy projects while opening doors for the industry. Therefore, keeping that in mind, the Virtual Asset Regulatory Authority [VARA] rolled out marketing and promoting crypto guidelines.
According to a recent report, VARA had reportedly announced regulatory guidelines on the promotions, marketing, and advertising of virtual assets throughout Dubai. The platform intends to create a legal framework that upholds security without hampering innovation and economic prospects.
The guidelines apply to the region’s licensed virtual assets service providers [VASPs]. The report stated,
“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.”
It should be noted that any form of outreach that includes awareness building, investor solicitation, customer engagement, and others fall under the VARA guidelines.
Is Dubai turning into a crypto haven?
Regulation and adoption go hand in hand. The average Joe or institutional investors are increasingly drawn into anything that is well-regulated. While certain governments have been hindering the growth of crypto with stringent laws, Dubai seems to be keeping the public in check.
Speaking about VARA’s latest initiative, Kokila Alagh, founder at KARM Legal Consultants, said,
“These regulations will go a long way in ensuring that users have the needed information before making their decisions,”
The executives of several licensed platforms in Dubai seemed to be quite happy with VARA’s announcement. Like Alagh, Faisal Zaidi, Co-Founder and CMO of Crypto Oasis, pointed out how “wide-scale adoption of decentralized technologies requires progressive policy-making.”