Dubai’s Virtual Asset Regulatory Authority (VARA) has reportedly instructed local cryptocurrency-related firms to acquire a license from the watchdog before advertising any of their products. The initiative is being introduced to secure maximum protection for investors and limit the spread of misleading information during marketing campaigns focused on promoting digital assets.
The United Arab Emirates (more specifically Dubai) has been making gradual steps toward adoption of the digital asset industry in recent times. In March this year, the country’s financial authorities created an independent agency to monitor the cryptocurrency sector. This agency is called the Virtual Asset Regulatory Authority (VARA).
According to Gulf News, the entity has begun its duties by introducing new regulatory guidelines for firms that advertise cryptocurrency products and services. This includes search platforms, media sites, and online or offline publishing channels that try to convince people to dive into the ecosystem. Such organizations now have to obtain an operational license from the VARA to ensure their operations are not detrimental to investors.
Over the past few months, Dubai has emerged as a global cryptocurrency hub where numerous companies and leading players are setting up camp. Sam Bankman-Fried’s spearheaded trading venue – FTX – recently established its regional headquarters in the city while CryptoCom and OKX received licenses to offer cryptocurrency products and services in the region.
There are numerous examples of Dubai’s pro-crypto stance. Some months ago, the city’s authorities granted Binance and CryptoCom licenses to operate in the region. FTX even received regulatory approval to establish its regional headquarters in Dubai. In May, the UAE’s leading airline – Emirates Airline – revealed plans to accept bitcoin as a payment method. COO Adel Ahmed Al-Redha said the company will also use blockchain technology to trace aircraft records.
Subsequently, the city hosted somewhat eccentric events in the cryptocurrency ecosystem. Three months ago, the French Florian Ughetto and the Paraguayan Liz Nunez got married in the Metaverse (the first event of its kind for Dubai). The couple said they wanted to gather all their friends and family for the wedding and the only place this could have been possible was in virtual reality.
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