Dubai tightens rules on crypto marketing: Dubai’s crypto watchdog, the Virtual Assets Regulatory Authority (Vara), introduced a new marketing framework for virtual asset service providers, tightening its rules for the promotion of virtual assets and requiring providers to highlight the risk associated with crypto investments in ad campaigns. The rules apply to all licensed virtual asset service providers, with non-licensed firms banned from marketing the digital asset.

Effective 1 October, all crypto firms promoting virtual assets in Dubai must adhere to the new rules or face fines of up to AED 10 mn, and starting at AED 500k.

Marketing campaigns will have to include disclaimers: Crypto companies will be required to state clearly the risks of investing in virtual assets to avoid misleading investors. This includes highlighting the risks of investing in crypto, with an explicit disclaimer noting that virtual assets “may lose their value in full or in part, and are subject to extreme volatility.” It also requires crypto exchanges and companies’ marketing content to refrain from using direct calls to buy crypto.

AND- No marketing of anonymity-enhanced coins: The new guidelines ban companies from marketing of anonymity-enhanced coins, which are private cryptocurrencies that cannot be traced on the blockchain.

REMEMBER- The UAE is making headway in becoming a crypto-friendly country, with the Dubai Financial Services Authority recently easing regulations around unrecognized crypto tokens and stablecoins, while the Central Bank of the UAE’s board greenlit the introduction of a licensing and regulatory system for stable cryptocurrencies.

The UAE is not alone: Countries like Belgium and Singapore have also worked to regulate crypto marketing in the past years, with the UK last year banning “refer a friend” bonuses and Belgium requiring risk disclaimers in ads.

The story got ink in Bloomberg

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