Dubai had developed into one of the world’s first jurisdictions to clarify its requirements on regulatory conditions for Web3 firms last year and regulators have now tweaked its rules around marketing of digital assets. The VARA stated marketing content about digital assets should include a disclaimer that warns people that activities related to digital assets could have financial risks. The global crypto market, which has a current valuation of $2.26 trillion, is notorious for its volatile characteristics, whereby constantly it stands at the mercy of microeconomic and macroeconomic factors.
All digital assets firms releasing advertisement material in Dubai post October 1 are required to add the following disclaimer as claimed by VARA: “Virtual assets may lose their value in full or in part and are subject to extreme volatility.”
The Dubai authorities want to caution persons trading in crypto assets against financial losses. Using the lens of virtual assets, VARA described these as recorded on a public blockchain and vulnerable to fraud, manipulation, and thefts.
VARA has clarified to all virtual asset service providers in the new guide that regulators will not accept any content which carries contradictory messages or what is referred to as ‘small print’ information. It also said that no marketing material for digital assets should provoke individuals into involving themselves with crypto assets or transfer their crypto assets to randomly distributed wallet addresses.
“The new Marketing Regulations shall apply to all marketing of or relating to virtual assets or VA activities in or targeting the UAE.
In March 2022, UAE Prime Minister Sheikh Mohammed bin Rashid Al Maktoum officially unveiled VARA into being to regulate the growth, development, and safety of the Web3 sector. All the players in the Web3 space wanting to set operations in Dubai are asked to identity themselves with VARA.
However, it is not the sole regulatory authority that has raised a red flag on improper promotion of crypto-related services. In 2022, reportedly, Securities and Exchange Board of India raised concerns relating to celebrities endorsing the crypto services and products. Later in the year, the Advertising Standards Council of India (ASCI) asked VDA advertisers to place the disclaimer, “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”
In May 2023, the UK government said it would also ban cold calling for cryptocurrencies to stamp out fraudulent activities.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.