Dubai's Virtual Assets Regulatory Authority (VARA) has announced Version 2.0 of its activity-based Rulebooks, setting a June 19 deadline for all virtual asset service providers (VASPs) to comply. This updated framework introduces strengthened rules across advisory, broker-dealer, custody, exchange, lending and borrowing, asset management, and transfer and settlement services to enhance market integrity and investor protection.
Key enhancements in this revision include greater controls on margin trading, token distribution, and clearer definitions relating to collateral wallet arrangements. VARA has standardized compliance obligations across all licensed activities and increased supervision support during a 30-day transition period to aid implementation.
These regulatory upgrades are part of VARA’s ongoing mandate to build a responsible and scalable crypto ecosystem. The authority previously enforced significant penalties on unauthorized crypto entities and plans to mandate disclosure of major token holders’ identities to improve transparency. Dubai’s crypto exchanges such as Binance, Crypto.com, and OKX are among those operating under VARA’s licensed framework.
VARA’s move to fortify margin trading controls and collateralization standards aligns Dubai’s market with global risk management practices and reflects accumulated licensing experience and international best practices. The updates aim to create a more mature, trustworthy regulatory environment that balances innovation with compliance.