News Roundup — Dubai's VARA issues new rules on crypto marketing, takes effect October 1

Major news stories this week;

1. Dubai's VARA issues new rules on crypto marketing, takes effect October 1
2. Kamala Harris wants the US to ‘remain dominant’ in blockchain
3. SEC Reveals 99% of TUSD Stablecoin’s Reserves Were Invested in Risky Fund
4. DBS to launch crypto options and structured notes for institutions
5. Kraken Expands European Presence with Acquisition of Dutch Crypto Broker Coin Meester

Story Summaries;

1. Dubai: From October 1, new rules on marketing will come into effect for virtual asset service providers (VASP) in Dubai, which will govern all aspects of how they message the services they provide. These were issued by Dubai's Virtual Assets Regulatory Authority (VARA). Recognising the need for clear and consistent guidelines, The new 'Marketing Guidance Document' will 'serve as a vital resource for VASPs', offering detailed instructions on how to conduct compliant marketing activities in Dubai. And ensure 'VASPs can navigate the regulatory landscape with confidence'.The guidance covers the use of language in marketing materials, disclosure requirements, and the ethical considerations that should underpin all marketing efforts. "The updated regulations place a strong emphasis on the accuracy of marketing communications, the avoidance of misleading information, and the protection of consumer interests," said VARA in a statement. "They apply to all entities involved in marketing virtual assets or related activities, regardless of their licensing status with VARA."
2. “We will invest in biomanufacturing and aerospace, remain dominant in AI and quantum computing, blockchain and other emerging technologies, [and] expand our lead in clean energy innovation and manufacturing,” Harris said in a Sept. 25 speech at The Economic Club of Pittsburgh.
3. On Tuesday, the Securities and Exchange Commission (SEC) disclosed that TrueCoin LLC and TrustToken Inc., the parties behind the TrueUSD (TUSD) improperly invested nearly all their reserves in a speculative offshore fund. This revelation led to a settlement of charges against the companies for fraudulent and unregistered sales of investment contracts. By March 2022, more than half a billion dollars backing TUSD had been invested in the risky fund by TrueCoin and an associated offshore entity. SEC alleges that despite redemption challenges identified by fall 2022, both entities continued to mislead investors about TUSD being fully backed by US dollars. By September 2024, a shocking 99% of TUSD’s reserves were tied to this speculative fund.
4. Singapore’s DBS Bank will launch over-the-counter (OTC) crypto options trading and structured notes for its institutional clients. On Sept. 17, the bank announced that it would offer financial products linked to the price of Bitcoin and Ether, the two biggest digital assets by market cap.DBS said that starting in the fourth quarter of 2024, clients who want exposure to these crypto assets can invest in the assets through options trading and structured notes.
5. Crypto exchange Kraken has acquired Coin Meester B.V. (BCM), one of the Netherlands’ oldest registered crypto broker firms.The deal, finalized on Tuesday, marks a significant step in Kraken’s strategy to strengthen its footprint across Europe. By acquiring BCM, Kraken aims to solidify its presence in the Dutch market and further establish its position as a registered Virtual Asset Service Provider (VASP) in key European countries, including France and Poland.

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And that’s all for last week’s news! Wishing you a great week ahead!

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