As of October 1, 2024, Dubai's Virtual Asset Regulatory Authority (VARA) will enforce new marketing regulations for companies promoting virtual assets. These rules mandate that crypto advertisements include a clear disclaimer about the risks associated with crypto investments, emphasizing potential value loss and volatility.
Firms that fail to adhere to these new guidelines risk hefty fines, reaching up to AED 10 million (approximately $2.7 million). Penalties will be assessed based on the severity of the infractions, with repeat offenders facing increased fines.
Virtual asset service providers (VASPs) offering incentives must now obtain compliance approval from VARA to ensure that promotional materials transparently convey investment risks. This move aims to protect both retail and institutional investors as Dubai positions itself as a leading hub for blockchain and digital assets.
In South Korea, Worldcoin and its development company, Tools for Humanity (TFH), have been fined 1.14 billion Korean won ($830,000) for breaching data protection laws. The fine results from unauthorized collection of sensitive biometric data, including iris scans, from users without consent.
The Personal Information Protection Commission (PIPC) instructed Worldcoin to implement corrective measures, including securing explicit user consent for sensitive data collection and enhancing transparency regarding data storage and use. Additionally, users wishing to opt out of the Worldcoin service must have access to an effective data deletion mechanism.
The Hong Kong Monetary Authority (HKMA) has launched the second phase of its digital currency project, now named Project e-HKD+. This phase focuses on advanced use cases for digital money, such as tokenized deposits, and aims to evaluate the feasibility of digital currencies in retail and corporate environments.
Project e-HKD+ involves collaboration with 11 firms conducting trials on tokenized asset settlement, programmable payments, and offline transactions. Findings from this phase will influence the future design and regulatory framework for digital currencies in Hong Kong, with key insights expected to be shared by the end of 2025.
Eddie Yue, Chief Executive of the HKMA, highlighted the importance of this initiative in positioning Hong Kong at the forefront of financial technology.
