The Dubai Virtual Assets Regulatory Authority (VARA) issued a new administrative order regulating the marketing, advertising and promotion of virtual assets (VA). This broad guideline covers both direct and indirect marketing and applies to all entities (domestic or foreign) who are catering / targeting the residents / customers within the Emirate of Dubai or UAE. This may also apply to those entities who are not conducting the activities in Dubai (originates outside Dubai and not targeting people within Dubai), if VARA determines such activities pose a reputational or compliance risk. Some of the most important factors to be considered while marketing within the Emirates include: fairness & transparency, appropriate disclaimers, suitability, investor qualification etc.
Non- Compliance and Penalties
VARA is implementing a penalty structure comprising of both fines and enforcement mechanisms. This includes suspension of marketing activities, suspension / revocation of VARA license or trade license and fine/s ranging from AED 50,000 to AED 500,0000 per offence.
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Disclaimer: This publication is for informational purposes only and does not provide any legal advice.
