Dubai’s Virtual Asset Regulatory Authority (VARA) has announced that local cryptocurrency companies will have to obtain a license from the supervisory authority before advertising their products. The initiative aims to protect investors and limit the spread of misleading marketing campaigns by fraudulent crypto projects.
Dubai is considered a global cryptocurrency hub where the industry’s leading players have settled. The FTX exchange, led by Sam Bankman-Fried, has opened a regional headquarters in the city, while CryptoCom and OKX have been licensed to provide services in the region.
User security is a concern for VARA
In March this year, the UAE established an independent agency to monitor the cryptocurrency sector – the Virtual Asset Regulatory Authority (VARA).
“Our move is a leap into the future aimed at developing this sector and protecting all investors in it,” Prime Minister Sheikh Mohammed bin Rashid Al Maktoum said.
According to Gulf News, the authority has now drafted regulatory guidelines for firms that promote crypto products and services, including search platforms, media websites, and online or offline publication channels that encourage people to enter the ecosystem.
Such organisations, under the new rules, will have to be licensed by VARA, which will ensure that their activities are not detrimental to investors.
Dubai and cryptocurrencies
A few months ago, Dubai city authorities granted Binance and CryptoCom temporary licences to do business in the region. FTX was granted permission by the regulator to establish a regional headquarters in Dubai.
In May, the UAE’s leading airline, Emirates Airline, announced its intention to accept cryptocurrency payments for goods and services. Chief operating officer Adel Ahmed Al Redha revealed that the company will also use blockchain technology to track aircraft data. Dubai-based Frenchman Florian Huguetto and Paraguayan Liz Nunez wed three months ago in the meta-universe, the first such event for Dubai. The couple explained that they wanted to bring all their friends and family together for the wedding, and virtual reality was the only place where everyone could get together.
