The Virtual Assets Regulatory Authority (VARA) in Dubai has moved decisively, slapping cease-and-desist orders on seven VASPs. This is all a part of VARA’s continued attempts to make sure everyone follows its rules, especially when it comes to crypto marketing and licensing. The fines imposed can reach up to AED 100,000 (around $27,000), underscoring the gravity of these infractions.

VARA’s Commitment To Regulation

Founded in 2022, VARA seeks to establish Dubai as a worldwide center for virtual assets while safeguarding investor interests. The regulator supervises all operations concerning virtual assets, encompassing trading, management, and marketing.

According to VARA, the recent cease and desist orders are intended for organizations in Dubai to avoid illegal activities and be generally complaint to existing regulatory rules. Such encompasses strict regulation on how virtual assets must be marketed, free from false claims and transparent.

The Marketing Regulation clearly specifies the requirements to be fulfilled regarding virtual asset promotion. This includes not only companies licensed in Dubai, but overseas entities also promoting their services in the Emirate.

This means that regardless of the company’s location, all marketing initiatives targeted at Dubai residents must abide by VARA’s rules. This extensive jurisdiction demonstrates VARA’s dedication to upholding investor safety.

An In-Depth Examination Of The Infractions

The seven VASPs that were issued cease and desist orders violated these marketing regulations. The offenses encompassed deceptive advertising techniques

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Author: Christian Encila