Banners, Disclaimers, And Common Sense: Your Ticket To A Fine-Free Token2049

Quick checklist for Marketing at Token2049

INTRODUCTION

For projects attending Token2049 in Dubai, understanding and complying with the Dubai Virtual Assets Regulatory Authority's ("VARA") Marketing Regulations¹ and Guidance² ("Marketing Regulations") is essential. These rules govern how decentralised finance platforms, NFT projects, exchanges, infrastructure providers, and other virtual asset participants may promote their activities within Dubai.

This article provides a practical overview of permitted and prohibited activities, outlines the appropriate use of disclaimers (including for influencer partnerships and incentive programmes), and offers actionable guidance for safe and compliant participation at Token2049.

WHAT CONSTITUTES AS MARKETING UNDER VARA??

"Marketing" under VARA is broadly defined to include any advertisement, invitation, inducement, solicitation, offer, or promotion related to Virtual Assets ("VAs").³ These regulations apply to local entities and foreign businesses targeting the UAE, irrespective of licensing status.⁴

Key indicators that a campaign targets UAE audiences include:⁵

• Use of UAE imagery, cultural references, or local language;
• Pricing in AED;
• Dissemination through UAE-based media or events; or
• Targeting GCC-based consumers.

Accordingly, marketing at Token2049 (a physical event in Dubai) falls squarely within VARA's regulatory scope.

To participate without breaching the regulations, projects must either:

• Hold a valid VARA licence: In this case, you have to ensure ensure compliance with general requirements outlined below; or
• Operate under the limited "Event Exemption" available to unlicensed entities: In this case you have to ensure compliance with general and other additional measures.

GENERAL MARKETING REQUIREMENTS

All marketing content should be:

• Be fair, clear, and not misleading:⁶ All information in marketing materials must be truthful and presented in a balanced way. For example, claiming "guaranteed returns" or that a coin will "moon" is explicitly forbidden, as it misleads investors about risks.
• Do not market prohibited content and products: Marketing any "anonymity-enhanced" cryptocurrency (privacy coins) is strictly banned in Dubai.⁷
• Influencer posts or paid content:⁸ Labels like "Ad" or "Sponsored" should be used for social posts or videos. Disguising an ad as neutral content is prohibited. For content posted via paid influencers or sponsored articles, it must be transparent that it's an advertisement.
• Identifiable: Labels like "Ad" or "Sponsored" should be used for social posts or videos. Disguising an ad as neutral content is prohibited. For content posted via paid influencers or sponsored articles, it must be disclosed that it's an advertisement.
• One of VARA's key focuseses is prominent risk disclosure in all VA-related Marketing. If Marketing involves a specific VA or related service, the following risk warnings are required:
• Highlight volatility and loss risks: Every Marketing communication about a VA must prominently warn that the asset can lose value (in part or in full) and is highly volatile.
• No direct investment calls to action: VARA bans any explicit call to buy or trade a virtual asset in marketing. The materials cannot include phrases like "Buy now!" or instructions to purchase a token.
• Ensure disclaimers are prominent and readable: According to VARA, "prominent" means the disclaimer should be immediately visible in a legible font, colour, and size that grabs attention.⁹

For example, in an ad, a small footnote flashed for a second is unacceptable. VARA's guidance showed a "Not Compliant" example where a TV ad's disclaimer was too brief and missing the required wording. For digital content, viewers shouldn't need to scroll or squint to find it. In video or audio, consider voice-over risk warnings or on-screen text for several seconds. The bottom line: no tiny fine print or rushed warnings.

COMPLIANCE WITH MARKETING REGULATIONS AT TOKEN 2049, DUBAI

Whilst only VARA-licenced entities may generally engage in marketing within Dubai, VARA provides a limited exemption for foreign (unlicensed) projects participating in specific events such as Token2049. To rely on this exemption, projects must:

Minimum requirements for unlicensed VASPs Marketing in Token2049:¹⁰

• Prohibition on Business Operations in the UAE:¹¹ Unlicensed Virtual Asset Service Providers are prohibited from engaging in any actual VA Activity during the course of the event. This includes, but is not limited to, operating a trading desk or exchanging tokens for money at the exhibition booth.
• No user onboarding: The event must be used solely for marketing and promotional purposes and not for conducting any virtual asset-related services. Companies must not onboard UAE-based customers at the event. This means that no on-site account registrations for local residents and no immediate sales are permitted. Even in cases where attendees express enthusiasm, representatives must politely advise them to follow up online after the event. Importantly, if a prospective customer is based in the UAE, the project cannot provide services to them unless and until it obtains the necessary VARA licence. This ensures that no regulated business activities are initiated in Dubai.
• Adherence to General Marketing Requirements: All marketing materials presented at the booth, including any promotional communications or presentations, must comply fully with VARA's general marketing requirements. This includes ensuring that all content is fair, clear, and not misleading and that it appropriately includes all required disclaimers.
• Mandatory Display of "Not VARA Regulated" Disclaimer: Every piece of marketing material, signage, and promotional content must prominently feature a clear notice stating that the entity is not licenced or regulated by VARA and cannot conduct virtual asset business in or from Dubai. For instance, booths and flyers should carry a statement such as:

"[Company Name] is not licensed by VARA in Dubai. No services are offered in the UAE."

This disclosure must be highly visible and cannot be relegated to small print.

• Limitations on Content at the Booth: Marketing conducted under the event exemption must be strictly limited to:
• The entity's name and logo;
• A general description of the entity's services;
• Indicative information such as typical fees; and
• Educational materials or product demonstrations.

For example, it is permissible to conduct live demonstrations of an application or platform using test accounts, display infographics illustrating the technology, and discuss potential use cases. However, booths must not be transformed into sales counters; direct selling or solicitation activities are not allowed.

• Restriction to Physical Event Scope: This marketing exemption applies strictly within the physical confines of the Token2049 event. Entities must not extend their marketing campaigns into public spaces or media channels within Dubai beyond the event itself unless they are appropriately licenced. For instance, targeting UAE users through online advertising or media placements outside the Token2049 venue constitutes a regulatory breach. Should an entity wish to pursue broader marketing efforts within the UAE, it is advisable to either partner with a locally licenced entity or secure the requisite VARA approvals prior to commencing such activities.

Some tips for the event organisers:

VARA's rules also implicitly discourage targeting unsuitable audiences – for instance, Token 2049 organisers must ensure attendees are qualified for the content, not minors or unknowledgeable consumers. As such, event organisers should:

• screen attendees and ensure they're appropriate for a crypto event;
• record attendee details (maintain such record for 5 years); and
• and have all exhibitors sign an undertaking that they won't conduct unlicenced activities.

CONCLUSION

Essentially, when in doubt, err on the side of compliance and include disclaimers and transparency, even in educational initiatives. This builds trust and keeps you safe under the rules. Compliance isn't about stifling your marketing – it's about doing it smartly and ethically. With well-crafted, transparent messaging, you can impress attendees and regulators alike. Good luck at Token 2049 and enjoy the event safely within the rules!

Footnotes

1. Regulations on the Marketing of Virtual Assets and Related Activities 2024.

2. Guidance on the Regulations on the Marketing of Virtual Assets and Related Activities 2024.

3. Rule 1.A.1, Marketing Regulations.

4. Introduction, VARA Marketing Regulations: "Market participants should note that requirements in these Marketing Regulations are applicable to all Entities, including domestic and/or foreign Entities, and whether they are authorised and Licensed by VARA to carry out VA Activities or not."

5. Sl. No. 2, VARA Marketing Guidance.

6. Rule 1.C.2.a, Marketing Regulations.

7. Rule 1.B.4, Marketing Regulations.

8. Rule 1.C.2.b, Marketing Regulations.

9. Sl. No. 4, Marketing Guidance.

10. Rule 1.F, Marketing Regulations.

11. Rule 1.F.1.a, Marketing Regulations.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.