Crypto marketing can sometimes be misleading, and if scams or shady schemes are promoted, it can be devastating for viewers. So, this is an area many countries are focusing on while talking about regulations. And Dubai, which wants to be the global crypto hub, is no different. Dubai’s new crypto marketing laws will focus on protecting investors and hopefully prevent misleading content from reaching the masses.
Dubai’s new crypto marketing laws
The country’s Virtual Asset Regulatory Authority (VARA) is bringing new regulatory guidelines for the promotion or marketing of digital assets. This includes outreach, advertising, spreading information, creating awareness, engaging customers, communications, acquiring investors, and many others. It means basically anything which connects the crypto exchange, project, or company with the customer. The Virtual Asset Regulatory Authority also states that it applies to both online and offline channels of marketing.
While marketing or promoting crypto, the facts should always be accurate, and the intent of promotion should be clear. This will ensure that investors know that they are being shown an ad and not some organic content, information, or facts.
Dubai will also bring a new licensing system called MVP (Minimal Viable Product), and till then, the regulations that “specifically address marketing and communications activities” will be implemented. It is important to understand how big of a role this will play in protecting investors. We have often seen many people who do not understand crypto fall prey to promises by projects or scams.
Dubai’s approach to crypto is positive
The city is not regulating cryptocurrencies from the side of retailers but from the business perspective. This means investors can safely trade and use crypto while businesses can operate properly. There won’t be a situation where they are able to trick investors or where there is a lapse of investor protection. Dubai is also issuing licenses to exchanges that want to operate in the country. Platforms like FTX and Binance have already received licenses to operate in Dubai, and other platforms can apply as well.
What are your thoughts on Dubai’s new crypto marketing laws that focus on investor protection? And how positive of a step do you think this is? Let us know in the comments below. Also, if you found our content informative, share it with your friends.
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