Dubai's Virtual Asset Regulatory Authority (VARA) is set to enforce tougher guidelines for companies promoting cryptocurrency investments within the region.
In a recent announcement, VARA stated that marketing materials must include a clear disclaimer warning that digital assets can lose value and are highly volatile.
Matthew White, VARA’s CEO, emphasized that providing clear guidance helps virtual asset service providers (VASPs) operate responsibly, enhancing market trust and transparency. Additionally, firms offering incentives related to digital assets must first secure compliance confirmation from VARA to ensure these promotions do not mislead potential investors about associated risks.
This regulatory update follows a new collaboration between VARA and the UAE’s Securities and Commodities Authority (SCA), allowing VARA-licensed providers to extend their services across the entire UAE. This initiative aims to create a cohesive regulatory framework that fosters a secure virtual asset ecosystem.
Moreover, a recent study placed the UAE third in a global crypto adoption index, highlighting the country’s favorable tax environment and strong support for innovation in the digital asset sector. The research indicates that a significant portion of the UAE population owns cryptocurrency, reflecting a vibrant startup culture and government backing for crypto initiatives.
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