VARA rules reshape Dubai crypto derivatives market
An updated version of the Exchange Services Rulebook prepared by Dubai Virtual Assets Regulatory Authority, or VARA, has come into force in Dubai. For the first time, the document sets out separate requirements for transactions involving crypto derivatives. The new version of the rules has been in effect since March 31, 2026.
The changes affect one of the largest segments of the crypto market — futures, perpetual contracts and other derivative instruments, Cryptopolitan reported. According to market estimates, trading volume in this segment reached $85.7 trillion in 2025, while average daily turnover stood at about $264.5 billion. The update establishes a separate operating framework for a market that had been developing faster than its regulatory base.
What exactly has changed
The rulebook now includes a separate section — Exchange Traded Derivative Services Rules. It applies to licensed companies providing virtual asset services in Dubai. The document sets requirements for client classification, segregation of client accounts, disclosure standards, the use of margin and leverage, as well as exchange actions during sharp market moves.
VARA also clarified the scope of its jurisdiction: the rules apply in mainland Dubai and free zones, but do not extend to DIFC.
One of the key provisions concerns retail investors. For them, the minimum initial margin has been set at 20% of the notional value of a position. This means the maximum leverage for that category of clients is capped at 5:1. Compared with the terms long offered by offshore platforms, this is a significantly stricter approach to risk control.
What this means for the market
The new version of the rules creates a legal basis for licensed participants to launch derivative products. For Dubai, this is an important stage, as the local virtual asset market has already attracted international companies, while the supervisory framework is gradually expanding beyond spot trading to more complex instruments.
Ruben Bombardi said: “Derivatives are a natural next step in the evolution of virtual asset markets, but they demand a higher standard of governance.”
The significance of this decision goes beyond a single market. VARA is offering a crypto derivatives regulatory model built on principles close to traditional financial oversight: risk limits, mandatory disclosure of terms, controls on retail investor access and the ability for the regulator to intervene quickly when needed. If this model proves workable, other jurisdictions that are still cautious about giving retail investors access to such instruments may look to it as a reference point.
In May 2025, VARA had already revised its regulatory framework, tightening leverage and collateral requirements for broker-dealers and exchanges. The current update continues that approach: the regulator is steadily tightening requirements for higher-risk segments of the market.
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