Dubai VARA Penalizes Crypto Firms for Non-Compliance
Seven cryptocurrency companies that violated marketing regulations and operated without the required permits were penalized by Dubai‘s Virtual Assets Regulatory Authority. In addition to the fines, VARA issued cease-and-desist orders without disclosing the identities of the organizations in question.
All entities in question have been instructed to immediately cease all activities and desist from undertaking any marketing or advertising of virtual asset services,
the statement
From 50,000 dirhams ($13,600) to 100,000 dirhams were the possible fines. The UAE is known for its crypto-friendly policies, including exemptions from value-added tax (VAT) on cryptocurrency transactions. Thus, this crackdown caused some concern.
Dubai’s VARA Enforces Strict Crypto Marketing Standards for Domestic and Foreign Firms
In late September 2024, VARA released new guidelines and standards for marketing, which are being enforced. As of last week, all virtual asset deals, promotions, and marketing within or targeting the United Arab Emirates are subject to these regulations. Notwithstanding their permission status from VARA, regulations apply to both domestic and foreign organizations.
According to recent regulatory revisions made by Dubai’s VARA, all marketing restrictions must be followed to the letter. The use of virtual asset service providers (VASPs) licensed by VARA exclusively in cryptocurrency-related marketing directed towards the United Arab Emirates is one fundamental prerequisite. Companies that do not target or operate in the UAE are free from the marketing laws, even though they apply outside of the country. International and UAE rules must be followed by any marketing carried out in Dubai or other areas. Concerning infractions, VARA can work with other authorities.
VARA Mandates Compliance for Crypto Campaigns Targeting UAE: Key Changes to Know
The term “targeting the UAE” is used generally to include the campaign’s messaging, usage of local money, and usage of dialects or spokespersons unique to the country. Marketing materials must adhere to regulations that are applicable to all forms of media and must be truthful, transparent, and equitable. Organizations have eight years to maintain compliance documents.
Lastly, educational resources, personal communications, and journalistic information are all exempt. To avoid being labeled as marketing, these must fulfill certain requirements. Key opinion leaders (KOLs) are not eligible for these exemptions, which is quite significant. Part of Dubai’s continuous efforts to strike a balance between consumer protection and cryptocurrency innovation are these regulatory revisions.
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