A. Examples of Marketing content in breach of general requirements

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The examples of Marketing content below are all in breach of the general requirements under Marketing Regulation I.C.2.

1. Television advertisement

Figure (1): Screen capture of television advertisement

NOT COMPLIANT: Suggesting returns are guaranteed.
The above is a screen capture from a 30-second television advertisement by ABC VASP. “Looking for crypto investments which are #UPONLY” and “…best coins which will moon in 2024” are both messages which suggest that ABC VASP can provide guaranteed returns on its clients’ investments.
This advertisement is therefore in breach of Marketing Regulation I.C.2.e, which prohibits all Marketing from stating or implying that investment returns are guaranteed.
Figure (2): Screen capture of disclaimer in television advertisement

NOT COMPLIANT: Disclaimer does not contain the information required.
At the end of the same television advertisement as the one in Figure (1), the visual in Figure (2) above is shown for three seconds.
As shown in Figure (1), the advertisement refers to VA1 specifically and therefore contains Marketing relating to a Virtual Asset. Marketing Regulations I.C.3.b and I.C.3.c provide that Marketing of or relating to, Virtual Assets must:
(i)	include a prominent disclaimer that Virtual Assets may lose their value in full or in part and are subject to extreme volatility; and
(ii)	state clearly that the owner and/or investor in the Virtual Asset can lose all the money or other value they invest and do not benefit from any form of financial protection.
Assuming there are no other disclaimers in the television advertisement, the message “Not financial advice. DYOR.” would not be sufficient for compliance with Marketing Regulations I.C.3.b and I.C.3.c as it does not include the specific messages required.
The following updated disclaimer would comply with the above requirements: “Not financial advice. Crypto is highly volatile and may drop in value significantly. You may lose the amounts you invest and your investments do not benefit from any form of financial protection.” This disclaimer must also be displayed prominently in relation to the Marketing content (see guidance on “prominent disclaimer” in Part I of this Guidance on Marketing Regulations).

2. CEO Online Q&A

Figure (3): Screen capture of webpage showing CEO Q&A hosted by ABC VASP

NOT COMPLIANT: Suggesting investment decisions are trivial, simple or easy without reference to risk of loss.
ABC VASP hosted an online Q&A with its CEO answering questions submitted by the community. The webpage is publicly accessible (i.e. no registration or sign up required).
It is apparent that the main message in the CEO’s response is to “pitch” ABC VASP to individuals who “don’t know anything about crypto”. This qualifies as Marketing.
Provided that all details are accurate, fair, clear and not misleading then the CEO’s description of features of the service, such as “No minimum investments” and “start investing in minutes”, are permissible.
However, the message of “zero effort for unlimited upside” does not satisfy the requirements of the Marketing Regulation I.C.2.f that Marketing must not imply that investment decisions are trivial, simple, or easy. It is also inconsistent with the fact that investments may lose their value (Marketing Regulation I.C.2.c).
Overall, this Q&A response does not present a balanced picture of the potential risks and returns involved in investing in Virtual Assets or using ABC VASP’s services.

3. Billboard Advertisement

Figure (4): Billboard advertisement displayed in public areas in Dubai

NOT COMPLIANT: Implies past performance guarantees future results and creates an urgency to acquire VA1.
ABC VASP has put up the above billboard advertisement in various public areas in Dubai. The contents of the billboard advertisement are in breach of the following Marketing Regulations:
(i)	Marketing must not state or imply that past performance of investments guarantees or is indicative of future results (Marketing Regulation I.C.2.g); and
(ii)	Marketing must not state or imply an urgency or create a fear of missing out on future appreciation in value or profits due to inaction (Marketing Regulation I.C.2.h).

4. References to past performance (Marketing Regulation I.C.2.g)

The billboard advertisement suggests the value of VA1 may go up by “100x”, as it had previously done so.
If Marketing content refers to the past performance of a Virtual Asset, it should at least include statements similar to the following to ensure that the reference is balanced out by appropriate qualifications:
(i)	“The above information refers to the past performance of VA1 and is not a reliable indicator of its future performance.”; or
(ii)	“Investments can go up and down. Past performance is not necessarily indicative of future performance.”
Such statements should be presented legibly in the main part of the Marketing content in a font size that is easily read and in close proximity to the information about past performance.
The Marketing content should also clarify that any references to the past performance of a Virtual Asset does not guarantee or is indicative of future results.

5. Implying an urgency or creating a fear of missing out (Marketing Regulation I.C.2.h)

The billboard advertisement also calls for the audience to not “miss out on its bull run this time”. Such statement is clearly designed to create a fear of missing out on future appreciation.
Any messages of this nature should be presented in a balanced manner. This may include showing statements regarding the importance of careful consideration before signing up for, or using, a VASP’s service and that Virtual Assets may lose their value.
Given the Marketing content is presented in the form of a billboard advertisement and that the target audience will not be able to read its content in detail, it is very unlikely that the necessary messages and disclaimers would be able to be presented in balanced manner in the overall context of the Marketing. As such, these messages may be better suited to other media or channels which are considered by recipients for a longer period of time. Entities carrying out Marketing should always carefully consider whether a particular medium or channel is suitable for a particular message.