The First Regulatory Output: Marketing Before Licensing
VARA’s marketing regulations hold a unique position in the authority’s regulatory chronology: they were the first substantive regulatory output published by VARA, issued in August 2022 under the heading “VARA issues Regulations governing Virtual Assets Marketing as the foundation for Safe Market participation.” This sequencing was deliberate — VARA established marketing rules before the full licensing framework to address the most immediate consumer protection risk: misleading advertising of virtual asset products to Dubai residents.
The marketing regulations remain a cornerstone of VARA’s compliance framework and have generated notable enforcement activity, including the July 2025 action against THE OPEN NETWORK FOUNDATION for “Breaches of the VARA Marketing Regulations.”
Scope of the Marketing Regulations
The marketing regulations apply to all marketing, advertising, and promotional activities related to virtual assets conducted in or directed at persons in the Emirate of Dubai. The scope is intentionally broad: it captures not only licensed VASPs conducting marketing within their permitted activities, but also any entity — licensed or unlicensed — that markets virtual asset products or services to a Dubai audience.
This broad scope explains why a significant portion of VARA’s enforcement actions cite marketing violations. Of the 36+ entities subject to enforcement actions through early 2026, the majority include “Advertising and Marketing virtual asset activities in Dubai” among the cited violations. For entities like VESTA PRIME PORTAL CO. L.L.C. (January 2026) and many of the entities sanctioned in the March 2025 enforcement wave, marketing violations were central to the enforcement action.
Core Marketing Requirements
Fair, Clear, and Not Misleading
The foundational principle of VARA’s marketing regulations mirrors traditional financial services advertising standards: all marketing communications must be fair, clear, and not misleading. In the virtual asset context, this principle has specific implications:
Accuracy: Marketing materials must accurately represent the nature, features, risks, and costs of virtual asset products and services. Claims about returns, security features, or regulatory status must be verifiable and truthful.
Balanced presentation: Where potential benefits are highlighted, the associated risks must be presented with equal prominence. Marketing that emphasizes potential returns without adequately disclosing the risk of loss violates this standard.
Comprehensibility: Marketing materials must be understandable by the intended audience. Technical jargon, while acceptable in materials directed at sophisticated or qualified investors, must be accompanied by plain-language explanations in materials directed at retail consumers.
Risk Warnings
Virtual asset marketing must include prominent risk warnings. The specific warning language and presentation requirements are designed to ensure that consumers understand the volatile and speculative nature of many virtual asset products before making investment decisions.
Required risk warnings typically include:
- Warning that virtual asset values can go down as well as up
- Warning that past performance is not indicative of future results
- Warning that virtual asset investments may not be suitable for all investors
- Warning that consumers should not invest more than they can afford to lose
Prohibited Marketing Practices
VARA’s marketing regulations prohibit several specific practices:
Misleading claims about regulatory status: Entities may not imply or state that their products or services are regulated by VARA unless they hold a valid VARA licence. Unlicensed entities that market services while implying regulatory approval face enforcement action on multiple grounds.
Guaranteed returns: Marketing that promises or guarantees specific investment returns from virtual asset products is prohibited. This includes direct guarantees and implied guarantees through phrases like “risk-free” or “guaranteed profit.”
Pressure selling: Marketing techniques designed to pressure consumers into making rapid investment decisions — including artificial urgency, limited-time offers on investment products, and fear-of-missing-out (FOMO) messaging — are restricted.
Targeting vulnerable consumers: Marketing practices that specifically target financially unsophisticated consumers, minors, or other vulnerable groups are subject to heightened scrutiny.
Social Media and Digital Marketing
The regulations explicitly address social media marketing, recognizing that much virtual asset marketing occurs through digital channels including social media platforms, messaging applications, influencer content, and online advertising.
Influencer Marketing Requirements
The use of influencers, key opinion leaders (KOLs), and paid promotional content is subject to specific requirements:
- Disclosure: Sponsored or paid promotional content must be clearly identified as such. Undisclosed paid promotion constitutes misleading marketing.
- Content standards: Influencer content is held to the same fair, clear, and not misleading standard as traditional marketing materials. The entity paying for the promotion is responsible for ensuring compliance.
- Due diligence: VASPs engaging influencers for marketing purposes must conduct due diligence on the influencer and retain oversight of the marketing content.
Social Media Platform Compliance
Marketing through social media platforms must comply with both VARA’s marketing regulations and the applicable platform’s advertising policies. VASPs are responsible for ensuring that their social media marketing is accurate, includes required risk warnings, and does not target prohibited audiences.
Enforcement Precedents
THE OPEN NETWORK FOUNDATION — July 2025
The enforcement action against THE OPEN NETWORK FOUNDATION in July 2025 is the most significant marketing-specific enforcement action in VARA’s history. The entity faced penalties specifically for “Breaches of the VARA Marketing Regulations,” resulting in cease-and-desist orders, financial penalties, and a public statement. This case is particularly notable because it targeted regulatory breaches (marketing violations) rather than unlicensed activity, demonstrating that even entities with some form of regulatory engagement can face enforcement for marketing non-compliance.
Unlicensed Entity Marketing Violations
The majority of VARA’s enforcement actions against unlicensed entities include marketing violations alongside unlicensed activity citations. Entities like MASTERCOIN DMCC, COIN ASKA DMCC, CRYPTO DESK EXCHANGE SERVICES L.L.C, and THE CRYPTOVERSE TECHNOLOGIES EST (all March or January 2025) were cited specifically for “Advertising and Marketing virtual asset activities in Dubai” — in some cases, marketing was the only cited violation, without additional charges of directly conducting virtual asset operations.
This enforcement pattern demonstrates that VARA treats marketing of virtual asset activities as itself a regulated activity requiring authorization, not merely an ancillary action to providing virtual asset services.
Compliance Guidance for Licensed VASPs
Licensed VASPs maintaining marketing compliance should implement the following controls:
Pre-Approval Process
Establish a marketing compliance review process that ensures all marketing materials — including social media posts, website content, advertising campaigns, and influencer partnerships — are reviewed for regulatory compliance before publication.
Content Library Management
Maintain a library of approved marketing materials and risk warning templates. Track the use of marketing materials across channels and ensure that outdated or non-compliant materials are promptly withdrawn.
Social Media Monitoring
Monitor social media activity related to the entity’s brand, products, and services. This includes monitoring for unauthorized marketing by third parties, employees, or affiliates.
Incident Response
Establish procedures for responding to marketing compliance incidents, including the rapid withdrawal of non-compliant materials and notification to VARA where required.
Relationship to Broader Compliance Framework
Marketing compliance is one component of the broader VASP compliance obligation framework. It intersects with:
- Consumer protection: Marketing regulations directly serve VARA’s consumer protection mandate
- AML/CFT obligations: Marketing that facilitates unlicensed virtual asset activity may compound AML/CFT violations
- Licensing requirements: Marketing activities in Dubai require VARA licensing authorization
For more on VARA’s enforcement approach to marketing and other violations, see our enforcement section and enforcement actions dashboard. For comparison with marketing regulations in other UAE jurisdictions, see our VARA vs DFSA analysis.
For the broader regulatory context, visit UAE Tokenization Regulations. For information on how licensed exchanges handle marketing compliance, see our entity profiles for Binance Dubai and Crypto.com Dubai.
VARA’s Marketing Regulations in Detail
First issued in August 2022, VARA’s marketing regulations are the authority’s earliest regulatory output — published before the Virtual Assets and Related Activities Regulations 2023 and before any VARA licences were granted. This early publication reflects VARA’s recognition that misleading virtual asset marketing poses immediate consumer risk and requires regulatory attention before the broader framework is complete.
Scope of the Marketing Regulations
The marketing regulations apply to all advertising, promotional materials, and marketing communications related to virtual asset activities in Dubai. This includes:
- Digital Advertising: Online ads, social media promotions, and website content
- Print and Broadcast: Traditional media advertising
- Event Marketing: Conference sponsorship, event promotion, and exhibition materials
- Influencer Marketing: Promotional content created by or featuring influencers
- Incentive Promotions: Referral programmes, bonus offerings, and reward schemes
Key Requirements
Accuracy and Fairness: Marketing materials must not be misleading, deceptive, or likely to create a false impression about the nature, risks, or returns associated with virtual asset services.
Risk Warnings: Appropriate risk warnings must be included in promotional materials. The specific risk warnings required depend on the nature of the service being promoted.
Targeting Restrictions: Marketing must not target vulnerable consumers or be designed to exploit behavioural biases that lead to excessive risk-taking.
Licensing Disclosure: Marketing materials should clearly indicate the entity’s VARA licensing status. This requirement helps consumers distinguish between licensed and unlicensed operators.
Enforcement Actions for Marketing Violations
VARA has taken enforcement action specifically for marketing regulation breaches:
- The Open Network Foundation (TON) (July 2025): Cease-and-desist orders, financial penalties, and a public statement for “breaches of the VARA Marketing Regulations.” This was the first enforcement action focused specifically on marketing violations by a well-known blockchain project.
- Vesta Prime Portal (January 2026): Penalised for “advertising and marketing virtual asset activities in Dubai” without a licence.
- Multiple unlicensed entities: Most enforcement actions against unlicensed operators include advertising/marketing violations alongside operational violations.
Compliance for Licensed Entities
Licensed entities including Binance Dubai, OKX Middle East, BitOasis, Crypto.com Dubai, and Bybit Dubai must ensure that all marketing activities comply with VARA’s standards. Given the enforcement precedents, marketing compliance should involve:
- Legal review of all promotional materials before publication
- Compliance team approval for marketing campaigns
- Regular review of social media presence for compliance
- Training for marketing staff on VARA’s requirements
- Monitoring of affiliate and influencer marketing for compliance
Marketing Compliance Programme Design
Licensed VASPs should design marketing compliance programmes that address VARA’s requirements systematically:
Pre-Publication Review
All marketing materials should undergo compliance review before publication. This review should assess:
- Accuracy of claims about products, services, and performance
- Presence of required risk warnings and disclaimers
- Compliance with VARA’s standards for promotional content
- Appropriate targeting (avoiding vulnerable consumers, complying with qualified investor classification)
- Consistency with the entity’s VARA licence scope
Social Media Monitoring
Given the prevalence of social media marketing in the virtual asset sector, licensed VASPs must monitor their social media presence for compliance. This includes:
- Official account posts and advertisements
- Employee social media activity related to the entity’s services
- Affiliate and influencer marketing content
- User-generated content that might constitute endorsement or promotion
Record-Keeping
Maintain records of all marketing materials, including:
- The content and format of each marketing communication
- Approval records showing compliance review
- Distribution channels and target audiences
- Duration of campaigns
- Any consumer complaints related to marketing
Third-Party Marketing
When licensed VASPs use third parties for marketing — including affiliates, influencers, or advertising agencies — the VASP remains responsible for regulatory compliance. Contracts with marketing service providers should include compliance requirements, review processes, and termination provisions for non-compliance.
Enforcement Lessons
The TON Foundation enforcement (July 2025) and Vesta Prime Portal case (January 2026) demonstrate that marketing violations attract enforcement. Licensed entities should treat marketing compliance with the same rigour as AML/CFT compliance — as a core regulatory obligation with real enforcement consequences.