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What you need to know about the VARA Marketing Regulations
Following the issuance of Law No.4 of 2022 on the Regulation of Virtual Assets in February 2022 (the “DVAL“) and the establishment of the Dubai Virtual Assets Regulatory Authority (“VARA“), on 25 August 2022, VARA issued Administrative Order No.1/2022 Relating to Regulation of Marketing, Advertising and Promoting Related to Virtual Assets (the “Marketing Regulation“). As the latest addition to the fast developing virtual assets regulatory framework within the United Arab Emirates (“UAE“), the Marketing Regulation is the first executive regulation issued by VARA and governs the promotion of virtual assets and virtual asset related activities in the Emirate of Dubai (excluding the Dubai International Financial Centre) (“Dubai“).
In conjunction with the Marketing Regulation, VARA has also issued Administrative Order No.2/2022, which sets out details on the applicable fines and penalties in the event of non-compliance with the provisions of the Marketing Regulation (the “Penalties Regulation“).
Whilst a comprehensive licencing framework for virtual assets is yet to be rolled-out in Dubai, VARA has launched a minimum-viable-product (“MVP“) phase, whereby provisional ‘MVP’ licences are being issued to a select group of virtual asset industry participants, pending the release of further regulations by VARA that will establish a full-scale regime for the operation and licencing of virtual asset activities in Dubai.
Further to the commencement of the MVP phase, the Marketing Regulation seeks to establish clear guidelines for regulating virtual asset related communications and promotions in Dubai, that are supported by rigid enforcement standards and penalties for non-compliance.
Certain key considerations arising from the Marketing Regulation are summarised below.
General Restriction on Marketing
The Marketing Regulation imposes a general requirement (subject to certain exemptions outlined below) that all…
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