TLDR

VARA has set a final compliance deadline of June 19 for all virtual asset service providers in Dubai.
The updated Version 2.0 rulebooks cover seven key virtual asset activities, including exchange and custody services.
New controls focus on margin trading and token distribution to improve risk transparency and market stability.
VARA aims to standardize compliance requirements across all licensed entities in Dubai’s digital asset sector.
The updated framework includes clearer definitions for collateral wallet arrangements and operational safeguards.

Dubai’s Virtual Assets Regulatory Authority (VARA) has announced a new compliance deadline of June 19 for crypto exchanges. VARA released version 2.0 of its rulebooks, which covered seven regulated virtual asset activities with updated supervisory standards. This framework aims to strengthen market discipline while supporting innovation in Dubai’s fast-expanding crypto ecosystem.

New VARA Rules Target Market Stability

VARA introduced clearer operational rules for margin trading and token distribution, focusing on risk transparency and investor protection. These updates follow increased activity in these sectors across Dubai’s crypto market, prompting a need for stronger oversight. Consequently, the new controls aim to mitigate systemic risks and enhance market integrity.

The rulebooks provide structured definitions for collateral wallet arrangements, which ensures consistency in custody and collateral management. VARA expects all virtual asset service providers to apply these measures uniformly to enhance operational resilience. The consistent application across licensed activities promotes compliance and reduces potential regulatory gaps.

In addition, VARA’s enhanced monitoring mechanisms support its broader mandate to oversee virtual assets in all Dubai’s commercial zones. The refined requirements for margin-related activities demand full transparency and control to limit excessive leverage. This is expected to curb volatility and align Dubai with global risk management practices.

Standardization Across Seven Key Virtual Asset Activities

VARA’s Version 2.0 rulebooks include advisory, broker-dealer, custody, exchange, lending, transfer, and asset management services. Each activity has updated compliance expectations that licensed entities must meet by the June 19 deadline. The authority focuses on creating a secure and robust digital asset environment.

All activities now fall under a harmonized supervisory structure that seeks to align regulatory and operational standards across the board. VARA designed these frameworks to ensure that market participants uphold transparency and accountability. Additionally, this uniformity enhances Dubai’s credibility as a regulatory leader in digital finance.

Regardless of their specific operational scope, all service providers require clear procedures and audit-ready documentation. VARA’s approach supports a scalable regulatory model suitable for traditional financial institutions and crypto-native platforms. These efforts position Dubai as a global benchmark in virtual asset governance.

Growing Regional Impact and Market Expansion

VARA’s regulatory clarity has attracted key players such as Ripple, which recently onboarded two UAE clients for Ripple Payments. The company noted that 64% of regional finance leaders prioritize faster settlement, aligning with Dubai’s blockchain vision. Ripple’s expansion highlights how VARA’s framework continues to influence business decisions in the Middle East.

Additionally, CME Group launched XRP futures, reflecting rising demand and increased participation from global financial entities in the region. VARA’s proactive stance ensures that such innovations align with established compliance standards. These developments affirm Dubai’s role in shaping the future of virtual asset regulation.

With consistent enforcement and transparent rules, VARA continues to drive secure and structured digital asset growth. The June 19 compliance deadline marks a critical milestone in ensuring all operators meet the latest regulatory expectations. This

 

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Filed under: News - @ May 19, 2025 3:28 pm