Dubai regulator imposes stricter crypto rule
VARA tightens crypto rules, sets June 19 deadline
Dubai’s Virtual Assets Regulatory Authority (VARA) has issued an updated version of its regulatory framework, Version 2.0 of its Rulebooks, marking a significant step toward fortifying oversight of digital asset markets.
The regulator announced the revision on May 19, with a clear focus on tightening controls around margin trading and token distribution, while also enhancing clarity on collateral wallet arrangements.
The update introduces greater leverage limitations and stricter collateralization requirements, particularly through the Broker-Dealer and Exchange Rulebooks. These measures are designed to align Dubai’s crypto regulatory environment with international risk management standards, according to an official statement from VARA.
Broader oversight and transition timeline
Beyond margin controls, Version 2.0 addresses previously underregulated areas such as broker-dealer operations and custodial wallets, marking a more holistic approach to market supervision. VARA said these changes are informed by the city’s real-world licensing experience and are intended to support a more responsible, scalable crypto ecosystem.
To ensure a smooth transition, virtual asset service providers (VASPs) will be granted a 30-day compliance window, with full adherence to the new rules required by June 19, 2025. During this period, VARA will actively engage licensed entities to support the implementation of the revised standards.
Reinforcing Dubai's global position
The update comes as part of Dubai’s ongoing ambition to establish itself as a leading global hub for digital assets. Previous VARA regulations have already attracted major exchanges such as Binance, Crypto.com, and OKX, earning the regulator praise for clarity and forward-thinking governance.
“These rulebook updates reinforce the foundations of a responsible, scalable ecosystem,” said Ruben Bombardi, General Counsel and Head of Regulatory Enablement at VARA. As the market evolves, VARA’s focus appears set on strengthening trust, mitigating systemic risks, and maintaining Dubai’s appeal to global crypto enterprises.
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