Crypto Firms Must Toe the Line with Dubai VARA’s Compliance Regulations

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 compliance
confirmation 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.