With Dubai heading towards a new license program for cryptocurrency service providers, local regulators are unveiling additional marketing and advertising rules for the industry, as reported by Cointelegraph.
According to Cointelegraph, Dubai’s virtual asset regulatory authority (VARA), a cryptocurrency regulator, has reportedly announced new guidelines on marketing, advertising and promotions of virtual assets. Mentioned in the rules, VARA referred to all forms of outreach, communications and advertising, dissemination of information, building awareness, customer engagement, investor solicitation, among others. The guidelines are expected to cover all forms of virtual asset service providers (VASPs), including advertising platforms, ensurance of factual accuracy and demonstration of promotional intent to avoid misleading customers.“These regulations address marketing and communications activities, ahead of operationalising the MVP licensees so that any market information dissemination, and consumer solicitation are designed to safeguard community interests,” the VARA said in a statement.
On the basis of information by Cointelegraph, Cointelegraph noted that Sam Bankman-Fried’s FTX cryptocurrency exchange was one of the first companies to receive VARA’s minimum viable product (MVP) license through its local subsidiary FZE in July, 2022, which enabled FZE to function a VASP in the region completely. VARA’s new guidelines arrived along with Abu Dhabi’s new plans to start a strategy for blockchain and virtual assets to coordinate with the country’s overall economic strategy. On August 25, the Abu Dhabi Blockchain and Virtual Assets Committee conducted its first meeting to have discussions on the strategy.
Moreover, Cointelegraph noted Dubai’s VARA, established in March, 2022, is responsible for licensing and regulating all VASPs in the Emirate’s special development and free zones with the exception of the Dubai International Financial Centre. Known for its industry regulation plans, the regulator bought land in the virtual real world The Sandbox.
(With insights from Cointelegraph)