Dubai’s digital asset regulator, VARA, is tightening the rules for companies promoting crypto investments in the region.
In a recent press release, the Virtual Asset Regulatory Authority (VARA) stated that these companies must now include a disclaimer in their marketing materials regarding digital asset investments.
The crypto regulator emphasized the need for a clear disclaimer, warning that “virtual assets can lose their value entirely or partially and are highly volatile.” VARA CEO Matthew White stated that offering straightforward and practical guidance enables virtual asset service providers (VASPs) to “operate their services responsibly.” Additionally, he highlighted that this approach helps build trust and transparency in the market.
Companies providing incentives for digital assets or related products in the country must get the green light from regulators. This step helps make sure that these incentives aren’t misleading investors and that they can accurately assess the risks of their potential investments. Consequently, this announcement follows a new development allowing crypto providers licensed by VARA to broaden their services across the UAE market.
VARA-SCA partner for UAE crypto expansion
On Sept. 9, VARA (the Virtual Assets Regulatory Authority) and the Securities and Commodities Authority (SCA), the UAE’s federal financial agency, announced a new agreement to collaborate on overseeing virtual asset service providers (VASPs). Furthermore, companies operating in Dubai can now apply for a VARA license and automatically register with the SCA, enabling them to serve clients across the entire UAE.
VARA’s executive board chairman, Helal Saeed Al Marri, explained that this initiative reflects the country’s regulatory solid alignment. He emphasized that it advances the goal of creating a secure and interconnected virtual assets ecosystem. According to an investment migration consultancy study, the UAE has secured third place in the crypto adoption index.
The country excelled in tax-friendliness, outpacing many others on the list. Additionally, the UAE received high marks for its economic factors, innovation, and technology. Specifically, the study revealed that many people in the UAE are involved in cryptocurrency. Researchers highlighted how the country’s startups are flourishing, thanks partly to strong government support that aligns perfectly with the public’s excitement for crypto.
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