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Licensing of influencers in the financial sector in the UAE
The United Arab Emirates, known for its rapidly developing financial sector and active use of digital technologies, has announced updated licensing requirements for bloggers and influencers working in the financial sector. The decision was made by the Securities and Commodities Authority (SCA). It marks an important step toward increasing market transparency and protecting investors from unfair practices.
Until now, the space for online financial advice has remained relatively unregulated. Many influencers, lacking the necessary qualifications and knowledge, shared financial advice, forecasts, and analysis that were often inaccurate. This created risks for inexperienced investors, who could make decisions based on unverified information and incur significant financial losses.
The SCA's new initiative targets bloggers and influencers who disseminate any finance-related information on various platforms, whether social media, blogs, YouTube channels, or other online resources.
The SCA's new initiative targets bloggers and influencers who disseminate any finance-related information on various platforms, whether social media, blogs, YouTube channels, or other online resources.
This covers a wide range of activities, including:
- Recommendations on buying or selling financial instruments. This includes stocks, bonds, cryptocurrencies, derivatives, etc.
- Forecasting asset values. Predicting the future price of an asset requires in-depth analysis and understanding of the market. Licensing is intended to weed out non-professionals whose forecasts may be based on speculation rather than objective assessment.
- Analysis of virtual assets and trading platforms. The market for cryptocurrencies and other digital assets is characterized by high volatility and risks. Licensing analysts in this field ensures that their recommendations are based on verified data and do not mislead users.
- Publication of advertisements for financial products and services. Advertisements containing financial advice or recommendations are also subject to the new legislation. This will prevent influential individuals from being used to promote dubious or fraudulent schemes.
Obtaining an SCA license requires compliance with strict criteria, including verification of the influencer's qualifications, experience, and reputation. This guarantees that the content created meets high standards of professionalism and does not contain dubious information.
For financial influencers themselves, licensing is a tool for increasing audience trust and strengthening their professional reputation. The SCA license is a mark of quality that confirms the competence and reliability of a specialist. It allows influencers to earn the trust of their subscribers and build long-term relationships based on transparency and professionalism.
For financial influencers themselves, licensing is a tool for increasing audience trust and strengthening their professional reputation. The SCA license is a mark of quality that confirms the competence and reliability of a specialist. It allows influencers to earn the trust of their subscribers and build long-term relationships based on transparency and professionalism.
The introduction of licensing for influencers who create financial content in the UAE is a progressive step aimed at improving financial market regulation, protecting investors, and increasing overall trust in financial information in the digital space. This is an example of how the government is using innovative approaches to adapt to the rapidly changing world of online finance.
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