With the introduction of marketing and advertising regulations for the sector, Dubai will soon be launching a new license to transmit information to local regulators and service providers in the crypto space.
According to reports, new rules for the marketing, advertising, and promotion of cryptocurrencies were recently proposed by Dubai’s virtual asset regulatory authority (VARA), a cryptocurrency regulatory authority.
It discussed all means of outreach, communication, and advertising, involving, among other things, the dissemination of information, raising awareness, encouraging consumer engagement, and even investor solicitation.
Dubai to impose new guidelines on advertising platforms
Following the publication of the rules, local virtual asset providers in Dubai, including advertising platforms, will be required to uphold factual integrity and disclose any promotional aim in order to protect investors and clients.
The objective will be to increase awareness, engage clients, and seek investments, among other things. The provided guidelines will apply to all virtual asset service providers (VASPs).
“These regulations address marketing and communications activities, ahead of operationalizing the MVP licensees so that any market information dissemination, and consumer solicitation are designed to safeguard community interests,” VARA stated.
In order to avoid misled potential customers, the rules reportedly also call for all local VASPs, including advertising platforms, to guarantee factual accuracy and clearly state any promotional intent.
These new regulations will be linked to Dubai’s cryptocurrency-focused Minimal Viable Product (MVP) licence, according to a report from the VARA. It stated:
“The principles are supplemented by rigid enforcement standards and penalties for non-compliance that collectively provide market confidence ahead of MVP operations, as it augments marketing, data protection and consumer protection laws that have been well embedded across the UAE.”
According to earlier reports, Sam Bankman-FTX Fried’s cryptocurrency exchange was among the first businesses to be granted a VARA MVP licence. In July, OKX also received license from VARA to operate in Dubai.
The most populous city in the United Arab Emirates, Dubai, is also planning a massive entry in metaverse to boost digital economy in the region. In May, it purchased a LAND in The Sandbox, as TheCoinRise reported.
Read More
All News
Floppypepe ($FPPE) is your ticket to the moon. Escape the ordinary and reach for lunar gains with this AI meme token. Secure your spot now before it's too late.
Join Now