Dubai's Virtual Asset Regulatory Authority (VARA) is set to enforce stricter requirements for companies that market cryptocurrency investments within the country. In a recent press release, VARA announced that these companies must include a specific disclaimer in their promotional materials.
The required disclaimer must be clearly visible and state that “virtual assets may lose their value in full or in part and are subject to extreme volatility.” This move aims to ensure that investors are aware of the potential risks associated with digital asset investments.
Guidance Aims for Responsible Operations
Matthew White, the CEO of VARA, emphasized the importance of providing clear and actionable guidance. He stated that this approach would help virtual asset service providers (VASPs) operate their services in a responsible manner. White also indicated that these measures would promote trust and transparency in the market.
In addition to the disclaimer, VARA stated that companies offering incentives related to digital assets must obtain complianceconfirmation from the regulator. This requirement is designed to prevent any misleading information that might obscure the risks involved in potential investments.
Earlier, White expressed intentions to reduce regulatory pressures on smaller cryptocurrency entities, as reported by Finance Magnates. During a regulatory panel at the Paris Blockchain Week, he recognized the shortcomings in current crypto regulations and highlighted the necessity for improvements, especially to assist smaller participants in the industry.
UAE Regulators Collaborate on VASPs
The announcement follows a recent development allowing crypto providers licensed by VARA to broaden their services to the wider UAE market. On September 9, VARA and the Securities and Commodities Authority (SCA), the UAE's federal financial agency, reached an agreement to mutually supervise VASPs.
Under this agreement, providers operating in Dubai can register with both VARA and SCA, enabling them to serve a larger customer base across the UAE.
Helal Saeed Al Marri, the Chairman of VARA’s Executive Board, remarked that this initiative reflects regulatory cohesion within the country. He noted that it advances the vision of establishing a secure and interoperable virtual assets ecosystem.
This article was written by Tareq Sikder at www.financemagnates.com.
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