Dubai is ramping up its crypto regulations with tighter rules for companies marketing digital assets.
The Virtual Asset Regulatory Authority (VARA) now mandates that firms promoting crypto investments must display a clear disclaimer warning that “virtual assets may lose their value in full or in part” and are subject to “extreme volatility.”
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This move aims to protect investors from the often unpredictable nature of cryptocurrencies.
According to VARA’s CEO, Matthew White, these stricter guidelines are a step towards promoting responsible services, fostering trust, and ensuring transparency in the volatile crypto space.
On top of that, any company offering incentives for digital assets must now secure compliance confirmation from the regulator. This ensures that incentives aren’t used to mislead investors into ignoring potential risks.
In a broader push, VARA recently teamed up with the Securities And Commodities Authority (SCA) to create a unified regulatory framework.
This collaboration, announced on September 9, allows crypto providers with a VARA license to automatically register with the SCA, expanding their services to the entire UAE. This is a significant step toward a cohesive and secure virtual asset ecosystem, according to Helal Saeed Al Marri, chairman of VARA’s executive board.
These regulatory updates come at a time when the UAE is rapidly rising as a crypto hotspot. A recent study ranks the UAE third in a global crypto adoption index, driven by a combination of tax-friendly policies, economic innovation, and strong governmental support.
The country’s pro-crypto stance has helped startups thrive, reflecting both the population’s enthusiasm for digital assets and the leadership’s vision of a blockchain-powered future.
