Dubai’s digital assets regulator will adopt stricter requirements for companies marketing crypto investments in the country.
Dubai’s Virtual Asset Regulatory Authority (VARA) announced in a press release sent to Cointelegraph that companies promoting digital asset investments in the country should add a disclaimer to their materials.
The cryptocurrency regulator said disclaimers must be prominently displayed and state that “virtual assets may lose value in whole or in part and are subject to extreme volatility.”
VARA CEO Matthew White said that providing clear and actionable guidance can help virtual asset service providers (VASPs) “provide services responsibly.” White also noted that this can enhance trust and transparency in the market.
In addition, companies offering digital asset or related product incentives in the country must obtain compliance confirmation from regulators. This ensures that incentives are not used to mislead investors in assessing the risks of their potential investments.
Regulator allows VARA-licensed providers to provide services across the UAE
The announcement follows a recent development that allows VARA-licensed cryptocurrency providers to expand their services to the wider United Arab Emirates market.
On September 9, VARA and the Securities and Commodities Authority (SCA), the federal financial institution of the UAE, announced an agreement on mutual supervision of VASPs. Under the agreement, providers operating in Dubai and seeking a VARA license can also register with SCA by default, allowing these companies to provide services throughout the UAE.
Helal Saeed Al Marri, Chairman of the VARA Executive Committee, said the move demonstrates the country’s regulatory cohesion. The official also stressed that the move advances their vision for a secure and interoperable virtual asset ecosystem.
UAE ranks third in global cryptocurrency adoption index
In a study conducted by an investment immigration consulting firm, the UAE ranked third in the cryptocurrency adoption index. The country scored highly in tax friendliness, surpassing other countries on the list. The UAE also scored very high in economic factors, innovation, and technology.
The study also noted that many people in the UAE own cryptocurrencies. The researchers said the country’s startup scene is thriving and government support matches people’s enthusiasm for cryptocurrencies.