Dubai's Virtual Assets Regulatory Authority (VARA) has issued Version 2.0 of its activity-based Rulebooks, setting a compliance deadline of June 19, 2025, for all licensed virtual asset service providers (VASPs) operating within the emirate.
Key Updates in VARA's Regulatory Framework
Enhanced Oversight on Margin Trading: The updated rules introduce stricter controls on leverage thresholds, clearer collateralization standards, and increased monitoring obligations for VASPs offering margin trading services.
Strengthened Token Distribution Regulations: VARA has implemented more rigorous guidelines for token distribution, including licensing requirements, investment protections, and marketing standards aimed at safeguarding retail investors.
Standardization of Compliance Requirements: The new rulebooks aim to harmonize compliance obligations across various virtual asset activities, such as advisory services, broker-dealer operations, custody services, exchange services, lending and borrowing, asset management, and transfer and settlement services.
Clear Definitions for Operational Terms: VARA has provided more precise definitions for terms like "client assets," "qualified custodians," and "collateral requirements," reducing ambiguity and facilitating easier compliance for VASPs.
VARA's General Counsel and Head of Regulatory Enablement, Ruben Bombardi, emphasized the authority's commitment to balancing innovation with compliance, stating that these updates reinforce the foundations of a responsible and scalable ecosystem.
Licensed VASPs are encouraged to review the updated rulebooks and ensure full compliance by the June 19 deadline to continue operating within Dubai's regulatory framework.