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VARA CEO Matthew White said that clear and actionable guidance helps crypto providers deliver their services responsibly.
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Dubai’s digital asset regulator will adopt stricter requirements for companies marketing crypto investments in the country.
In a press release sent to Cointelegraph, Dubai’s Virtual Asset Regulatory Authority (VARA) announced that companies promoting digital asset investments in the country should add a disclaimer to their material.
The crypto regulator said that the disclaimer must be prominently displayed and state that “virtual assets may lose their value in full 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) “deliver their services responsibly.” White also noted that this fosters trust and transparency in the market.
Additionally, companies offering incentives for digital assets or related products within the country must receive compliance confirmation from the regulator. This ensures that the incentives are not being used to mislead investors from assessing the risks of their potential investments.
Regulators to allow VARA-licensed providers to service broader UAE
The announcement follows a recent development that allows crypto providers licensed by VARA to expand their services to the broader UAE market.
On Sept. 9, VARA and the Securities And Commodities Authority (SCA), the UAE’s federal financial agency, announced an agreement on mutual supervision of VASPs. With this, providers operating in Dubai who wish to acquire a VARA license can also register by default with the SCA, allowing the companies to service the wider UAE.
His Excellency Helal Saeed Al Marri, the chairman of VARA’s executive board, said the move demonstrates regulatory cohesion in the country. The official also highlighted that it drives forward their vision of a secure and interoperable virtual assets ecosystem.
Related: Dubai court recognizes crypto as a valid salary payment
UAE ranks third in global crypto adoption index
In a study conducted by an investment migration consultancy firm, the UAE ranked third in a crypto adoption index. The country scored high 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 of the UAE’s population own crypto. The researchers said that the startups thrive in the country, and the government’s support matches the people’s enthusiasm for crypto.
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This article first appeared at Cointelegraph.com News
