The decision to establish the Virtual Assets Regulatory Authority (VARA) three years ago was a key move in giving Dubai credibility in the cryptocurrency sector.
Dubai chose sustainability over short-termism, which is a rarity in this fast-paced ecosystem. The move worked perfectly as Dubai kept bad actors away and built a safe crypto landscape.
Rules with Teeth, Not Noise
VARA announced its latest reforms in October, and they were not a blanket suppression of digital assets. The laws are precise, allowing the institution complete control.
The laissez-faire approach of North America and Asia does not work, and Dubai created a system where regulation is foundational, not optional.
VARA entered the crypto marketing space and banned glittery buzzwords such as ‘guaranteed returns’ and ‘limited-time offers’.
Influencers, advertising agencies and media platforms must tailor their marketing content to align with the VARA playbook before it reaches UAE residents.
Per VARA regulations, operators must always disclose risk, and campaigns have to go through various vetting processes, where they will be archived.
VARA has created a comprehensive crypto advertising code, but there is still enough room for innovation for anyone willing to adhere to the rules.
Crypto and iGaming – Regulated Synergy in the Making
The iGaming sector is among a plethora of industries which are poised to benefit from the well-thought-out Dubai crypto framework.
The General Commercial Gaming Regulatory Authority (GCGRA) is working towards introducing online betting licenses in the United Arab Emirates.
Some top gaming operators worldwide offer their players the option of depositing and withdrawing in crypto. The same will likely be the case in the UAE.
Many bettors who visit the popular Arab gaming platforms listed on comparison platform haztayeb-uae.com love the security and anonymity crypto offers to them.
Embedding regulated digital assets into Dubai’s regulated gambling sphere has two advantages. It will channel crypto into a supervised framework and provide betting operators with a sandbox where compliance, transparency and innovation coexist.
With strict but fair regulations, VARA will ensure that crypto used in the gaming ecosystem does not come from the shadows.
VARA’s infrastructure will keep everything above board and is the perfect way for blockchain and gaming to responsibly develop together.
Guardrails Before Growth
VARA runs a tight ship. Operators must build a compliance infrastructure before any social media post or YouTube advert goes live. All campaigns must pass through legal reviews.
The organisation will store creative assets for at least eight years. They check for formal influencer contracts with full disclosure and risk disclaimers across every communication channel.
They also scrutinise offline engagements, expositions and meet-ups. Platforms that want to host workshops or panels with UAE residents present must have all their documents in order. This strict system is forward-thinking and ensures that everything does not spiral out of control.
One of the key aspects of the VARA regulatory stipulations is that it demands higher standards from influencers and content creators. Influencer marketing is a popular tactic in crypto, but VARA ensures these personalities must vet the tokens and platforms they work with.
While influencers often run wild in many other countries, it is not the case in the UAE. Under the VARA regime, an influencer cannot promote an unlicensed crypto platform.
They will face massive financial penalties if they flout the rules and may not be eligible for more crypto gigs. With great influence comes even greater responsibility.
Creators now vet the platforms they work with and put more thought into curating content. Rather than force their audience down a path, they encourage them to make informed decisions.
Play by the Rules or Stay Out
Dubai’s rulebook does not apply only to companies with headquarters in the Middle East.
A Canadian start-up using a UAE-based Instagram influencer? Covered. A DeFi project in Singapore running Google Ads priced in AED? Also covered. The VARA regulations cover every possible angle involving the UAE.
Crypto firms have not walked away, because the UAE has a young and tech-savvy populace with particularly high digital asset adoption rates. They are adapting. The country is overflowing with exciting crypto potential, and they must play by the rules of the land to capitalise.
The world is taking notice of this responsible crypto behaviour, and it should be a blueprint for other Middle Eastern countries and nations worldwide.
While regulators have struggled in other regions, Dubai has established a functioning crypto model that allows innovation to shine within defined parameters.
