The Dubai Virtual Assets Regulatory Authority (VARA) has issued a warning to investors against falling for enticing online promotions that promise guaranteed returns. The authority emphasized that these tactics are among the most common tricks used in financial fraud related to virtual assets.
In a recent awareness notice, VARA clarified that its marketing regulations serve as the first line of defense for investor protection. These rules restrict the advertising and promotion of virtual assets exclusively to service providers licensed by VARA, requiring them to adhere to the highest standards of honesty, transparency, and disclosure.
VARA stressed that any investment offer regarding virtual assets promoted within Dubai must originate from a licensed and officially registered entity with the authority, and must comply with marketing regulations. It warned that engaging with unlicensed entities could result in significant financial losses for investors.
Investors are encouraged to verify the public registry of approved virtual asset service providers before making any investment decisions, noting that this verification process takes no longer than a minute but can help avoid costly mistakes.
This warning is part of Dubai’s efforts to enhance a secure and regulated investment environment in the virtual assets sector, solidifying its position as a leading global hub that adheres to the highest regulatory standards for market and investor protection.