As a seasoned crypto investor with a knack for navigating the ever-evolving digital asset landscape, I welcome the United Arab Emirates’ Virtual Assets Regulatory Authority’s (VARA) new rule requiring crypto firms to include risk disclaimers in their marketing materials. Having seen my fair share of market volatility and the occasional ‘rug pull,’ I appreciate any measure that sheds light on the inherent risks associated with this space.
The regulatory body for virtual assets in the United Arab Emirates has introduced a new regulation, which mandates cryptocurrency companies to include a cautionary notice, alerting potential investors about the inherent risks associated with investments in digital currencies.
Starting October 1st, companies marketing digital assets within the UAE are required to include a disclaimer in their products stating that “these virtual assets could potentially lose all or part of their value, and are susceptible to extreme fluctuations.” (Bloomberg report)
In the revised marketing instructions for digital items, businesses offering rewards for such digital goods or associated services in the United Arab Emirates should obtain a compliance verification from VARA before proceeding.
In other words, they need to demonstrate that the bonus won’t deceive or confuse investors about the potential risks associated with the investment product.
The CEO of VARA, Matthew White, is optimistic that offering straightforward and practical advice will enable virtual asset service providers to establish credibility and openness as they conduct business within the United Arab Emirates (UAE).
Lately, Dubai has emerged as a highly attractive city for crypto entrepreneurs due to its lenient tax laws regarding cryptocurrencies and abundant opportunities for venture capital funding.
According to a study conducted by Bitget Research, it’s projected that around half a million crypto traders currently reside in the Middle East. By the end of this year, this figure could soar as high as 700,000.
In the previous month, a significant court decision in Dubai acknowledged that cryptocurrencies can be considered a legitimate means of payment within employment agreements.
In October of 2023, the United Arab Emirates introduced RAK Digital Assets Oasis, a pioneering economic free zone catering to the realms of cryptocurrency, web3, blockchain, and artificial intelligence. This zone provides a favorable regulatory setup, offering tax incentives for businesses operating within it.
By March 2024, over a hundred different organizations had been granted permission to function within the RAK DAO, with Indian cryptocurrency exchange CoinDCX being one of them.
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2024-09-26 13:20