Dubai, Friday, October 4, 2024 – Dubai’s Virtual Asset Regulatory Authority (VARA) is introducing stricter compliance requirements for companies marketing cryptocurrency investments. Effective immediately, firms promoting digital assets must include a disclaimer that virtual assets “may lose their value in full or in part and are subject to extreme volatility.” This regulation, announced in a press release on September 26, 2024, is aimed at ensuring investors are aware of the risks associated with digital assets.
VARA CEO Matthew White emphasized the importance of these measures in guiding virtual asset service providers (VASPs) to operate responsibly. The agency’s goal is to enhance market transparency and promote trust. White also stated that companies offering incentives tied to digital assets must first secure regulatory approval, preventing the dissemination of misleading information.
This announcement follows a collaboration between VARA and the UAE’s Securities and Commodities Authority (SCA) to regulate VASPs nationwide. As of Sept. 9, 2024, crypto providers licensed by VARA can expand their services across the UAE by registering with both VARA and SCA, broadening their customer base.
Helal Saeed Al Marri, Chairman of VARA’s Executive Board, noted that this cooperation marks a significant step toward creating a unified virtual asset regulatory framework within the UAE, enhancing the safety and interoperability of the country’s digital assets ecosystem.
