The Virtual Asset Regulatory Authority (VARA) of Dubai has issued a new directive requiring all marketing materials for digital assets to include a clear disclaimer warning about the potential for loss of value and high volatility. This move is part of VARA's ongoing efforts to ensure responsible and transparent operations within the virtual asset service provider (VASP) industry.
VARA CEO Matthew White emphasized the importance of providing clear guidance to VASPs, stating that it helps foster market trust and transparency. Additionally, firms offering incentives related to digital assets must obtain compliance confirmation from VARA to prevent misleading potential investors.
In a significant step towards a unified regulatory framework, VARA has partnered with the UAE's Securities and Commodities Authority (SCA). This collaboration allows VARA-licensed providers to extend their services across the entire UAE, creating a more cohesive and secure virtual asset ecosystem.
The UAE's commitment to the digital asset industry is further highlighted by its ranking as the third-highest country in a global crypto adoption index. The country's favorable tax environment and strong support for innovation have contributed to its growing popularity among cryptocurrency enthusiasts. The research indicates that a substantial portion of the UAE population owns cryptocurrency, reflecting a vibrant startup culture and government backing for crypto initiatives.
September 2024, Cryptoniteuae