United Arab Emirates’s Virtual Assets Regulatory Authority new rule will require crypto firms to add a disclaimer, warning potential customers about the risks that come with investing in digital assets.

According to a Bloomberg report, companies that want to market their digital assets in the UAE must include a disclaimer to their produce that states “virtual assets may lose their value in full or in part, and are subject to extreme volatility,” starting Oct. 1.

In the updated marketing guidelines for virtual assets, companies that provide incentives for virtual assets or related products in the UAE must acquire a compliance confirmation from VARA.

For example, they must be able to prove that the bonus will not be used to “divert or mislead” investors from properly assessing the risks related to the investment product.

VARA Chief Executive Officer Matthew White hopes that “providing clear and actionable guidance” can guarantee virtual asset service providers will be able to build trust and transparency while operating in the UAE.

In recent years, Dubai has become one of the most favorable cities for crypto marketers, thanks to its crypto-friendly tax regulations and large venture capital investment prospects.

A report published by Bitget research revealed that in 2024, an average of 500,000 crypto traders are reside in the Middle East. The number is expected to skyrocket towards 700,000 by the end of the year.

Last month, a landmark Dubai court ruling recognized cryptocurrency as a valid form of payment under employment contracts.

In October 2023, United Arab Emirates launched RAK Digital Assets Oasis, the region’s first economic free zone that accommodates cryptocurrency, web3, blockchain, and artificial intelligence. The zone offers a business-friendly regulatory environment with tax benefits.

As of March 2024, more than 100 entities had received licenses to operate in the RAK DAO, including Indian crypto exchange CoinDCX.

The Middle East and North Africa region has become the seventh-largest cryptocurrency market as both retail and institutional adoption grows.

According to a Chainalysis report, MENA received $338.7 billion in cryptocurrencies between July 2023 and June 2024, securing the seventh spot. This accounted for 7.5% of the global on-chain value.

Türkiye leads the region with $137 billion in on-chain value received, followed by Morocco’s $12.7 billion. These two are the only countries in Chainalysis’ global crypto adoption index.

The report found that 93% of the transactions in the region were worth over $10,000, driven by professional and institutional movements. 

Per Chainalysis, the United Arab Emirates witnessed impressive growth in retail and institutional on-chain value due to its favorable regulatory landscape.

Last month, Tether, the issuer of the largest stablecoin USDT, announced to create a dirham-pegged stablecoin in the UAE which will be backed by the country’s liquid reserves. 

The stablecoin issuer joined forces with Fuze, a crypto infrastructure company, to educate both individuals and large institutions in Türkiye and the Middle East about cryptocurrencies and raise their awareness.

According to data from Chainalysis, Saudi Arabia’s crypto market saw a 154% year-over-year growth in the mentioned timeframe, emerging as the fastest-growing digital asset economy in the region.

Most of the on-chain activity in MENA happened on decentralized exchanges. 32.4% and 30.9% of the on-chain movements in the UAE and Saudi Arabia occurred on DEXs, per the report.

It’s important to note that Saudi Arabia and Qatar still don’t have an operational regulatory framework for crypto companies which could be the main reason behind their DEX use.

The Saudi Arabian Ministry of Investment invested $250 million in the Hedera blockchain in February to boost web3 development in the country. 

Crypto scammers took over OpenAI’s press account to post phishing links that targeted OpenAI users.

While the posts have now been deleted, crypto scammers managed to hijack OpenAI’s official press account on X on Sept. 23 to promote a suspected phishing link. The ChatGPT developer has yet to acknowledge the breach.

Those behind the hack promoted a token called “OPENAI,” claiming it would bridge the gap between blockchain and AI. 

The posts falsely promised that users could claim a portion of the token’s supply, allowing them access to the platform’s future beta programs and enticing them to click a phishing link that led to a flagged website.

To lend an air of legitimacy and prevent eagle-eyed users from warning others about the hack, the attackers disabled comments on the malicious posts, adding the message: “Comments turned off due to malicious links. Good luck all!”

One user on X claimed the fake website was designed to mimic the OpenAI branding and looked legitimate at first glance. However, when clicking the OpenAI logo, a prompt would ask visitors to connect their wallets.

When users connect their wallets to a malicious platform like this, they are tricked into signing a fraudulent transaction. This transaction often appears legitimate but actually grants the attacker control over the user’s assets, enabling them to drain all funds stored in the compromised wallet.

Called ‘approval phishing,’ these attacks have led to over $2.7 billion in losses since 2021, according to Chainalysis.

Unfortunately, similar attacks have targeted OpenAI execs on multiple occasions. 

Most recently, OpenAI researcher Jason Wei’s account was hacked to promote the same phishing scheme, with the attackers previously targeting OpenAI’s Chief Scientist, Jakub Pachocki. Last year, OpenAI CTO Mira Murati also faced a similar breach in June 2023.

As reported by crypto.news, virtual reality-focused project Decentraland also suffered the same fate last week, with scammers promoting a fake airdrop of its native token to mislead users into connecting their wallets and approving a malicious transaction.

While all the aforementioned attacks share similarities, it is unknown if the same group of attackers is behind them.