Legal Insights
Dubai’s Virtual Assets Regulatory Authority (VARA) issued UAE Crypto Marketing Regulations that apply across the UAE as of October, 2024. These rules govern how Virtual Assets (VAs) and related services can be promoted in the UAE market. This note outlines the core requirements and practical steps to reduce exposure for both clients and their marketing partners.
Who Can Market Regulated VA Services?
Only entities licensed by VARA as Virtual Asset Service Providers (VASPs) may promote regulated services (e.g., exchange operations, custody, brokerage). Marketing on behalf of unlicensed VASPs to UAE audiences is expressly prohibited, whether by internal teams, agencies, or influencers.
Example:
If a UAE-based KOL/marketing agency promotes a staking platform that lacks a VARA license, both the platform and the KOL may be in breach, regardless of whether the platform is geo-blocked.
Promoting Virtual Assets themselves (e.g., BTC, ETH, project tokens) is allowed only if:
- The asset is listed on a VARA-approved exchange
- The campaign meets all transparency and risk disclosure requirements
What Qualifies as ‘Marketing’?
VARA applies a broad definition of marketing, capturing both paid and organic content intended to influence user behavior. This includes:
- Sponsored posts, referral links, influencer content
- Banner ads, podcasts, videos, articles
- Physical advertising (e.g., billboards) or event-based promotions
Campaigns that include UAE-specific elements (i.e. Arabic language, AED pricing, Dubai visuals, or UAE-based KOLs) are considered UAE-targeted, regardless of the brand’s physical location. Importantly, geo-blocking alone does not exempt content from VARA rules.
In addition, VARA’s UAE Crypto Marketing Regulations contain detailed and express requirements regarding the structure, tone, and content of marketing communications, including mandatory disclaimers, prohibited language, and format-specific conditions. These rules are extensive and must be reviewed carefully in context — see Section C of Marketing Regulations for further details.
Influencers (KOLs): Full Compliance Required
Influencers are directly accountable for their marketing activities. Even “educational” or “informational” content is subject to regulation if it encourages user action.
KOLs must:
- Avoid exaggerated claims such as “guaranteed returns” or “risk-free investment”
- Refrain from urgency-driven language (“Buy now”, “Last chance”)
- Clearly disclose paid partnerships and include readable disclaimers (text overlays, captions, etc.)
- Present past performance cautiously – never as indicative of future gains.
Note:
VARA does not allow influencers to rely on journalistic or educational exemptions. Intent does not matter – only the effect on the audience.
Third-Party Responsibility: Agencies and Partners
Agencies, consultants, and influencer managers are each responsible for ensuring regulatory compliance. If you are managing or executing a campaign:
- Confirm your client’s licensing status before publishing any content.
- Retain documented approvals, creative scripts, and disclaimer language.
- Ensure influencers are briefed and aligned with UAE Crypto Marketing requirements.
Recordkeeping and Enforcement Risk
Entities engaged in VA marketing must keep complete records, including campaign materials, targeting criteria, and performance data, for at least two years. VARA has audit rights and has publicly committed to proactive enforcement.
Penalties include:
- Up to AED 10 million for unauthorized promotions or regulatory breaches
- Doubling of fines for repeated violations within one year
- 1% monthly interest on unpaid fines
VARA has already imposed multi-million-dirham fines in the sector. Enforcement is active.
Recommended Next Steps for Marketing Teams
To manage risk and maintain campaign readiness:
- Establish an internal checklist:
1. Confirm licensing of all clients
2. Pre-approve influencer scripts and creative assets
3. Embed clear, unambiguous disclaimers
4. Retain full records of all campaigns and approvals.
- Establish an internal checklist:
- Regularly update KOL onboarding materials with compliance guidance
- Avoid campaigns involving privacy tokens, unlisted assets, or unlicensed services.
If in doubt, consult with a legal professional. The reputational and financial costs of non-compliance can be significant.
Book a free consultation with our team to discuss your questions and receive clear, practical guidance.
