Dubai’s VARA Upgrades Crypto Rules: Enhanced Oversight for a More Secure Market

Dubai’s Virtual Asset Regulatory Authority (VARA) has just released a major update to its rulebook, Version 2.0, significantly strengthening its oversight of the crypto market. This upgrade focuses on improving market integrity and risk management, introducing tighter controls on margin trading and token distribution, and providing clearer definitions for collateral wallet arrangements. The updated rules aim to create a more resilient and transparent ecosystem for virtual assets in Dubai.

Version 2.0 impacts eight key virtual asset activities, including exchange services, custody, lending, and more. These improvements are designed to boost market discipline, enhance risk transparency, and increase operational resilience. VARA-licensed companies have until June 19, 2025, to comply with these enhanced regulations. This gives businesses a reasonable timeframe for implementation.

This move underscores Dubai’s commitment to building a robust and future-proof regulatory framework for the digital asset space, balancing innovation with essential safeguards. The updated Rulebooks are available on the VARA website.

Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice.