Dubai’s Crypto Regulator Sets June Deadline for Compliance With Revised Rulebooks
The Virtual Assets Regulatory Authority (VARA) of Dubai has issued a deadline of June 19, 2025, for all licensed digital asset companies to comply with its updated, activity-based Rulebooks, aimed at reinforcing market integrity, risk oversight, and regulatory transparency.
In an official announcement dated May 19, VARA introduced Version 2.0 of its Rulebooks, marking a significant step in the evolution of Dubai’s virtual asset regulatory framework. These revisions are designed to elevate operational consistency and better align with global regulatory standards.
Strengthened Controls and Clarified Definitions
The updated Rulebooks introduce stricter controls on margin trading and token distribution services, in addition to aligning compliance requirements across various licensed activities. VARA has also provided enhanced definitions for key terms such as collateral wallet arrangements, improving clarity for market participants.
A 30-day transition period has been granted to all Virtual Asset Service Providers (VASPs), during which VARA will actively engage with entities to support their transition. Full compliance is expected by June 19, 2025, after the transition period concludes.
“In line with global regulatory best practices, a 30-day transition period has been granted to all impacted VASPs,” the regulator noted in its statement.
Enhanced Oversight Across Regulated Activities
VARA emphasized its commitment to strengthening supervisory mechanisms across a range of regulated activities, including advisory, broker-dealer services, custody, exchange operations, lending and borrowing, virtual asset (VA) management and investment, and VA transfer and settlement services.
A VARA spokesperson explained that the updated Rulebooks bring greater uniformity to operational definitions, citing improved consistency in terms such as “client assets,” “qualified custodians,” and “collateral requirements.”
The changes also harmonize risk management protocols and disclosure obligations in areas where activities such as brokerage, custody, and exchange overlap. This integration aims to minimize regulatory ambiguity and help VASPs achieve cross-functional compliance more effectively.
Margin Trading and Token Distribution See Tighter Controls
Significant updates have been made to rules governing margin trading. VARA has reduced leverage thresholds, enforced stricter collateralization standards, and imposed enhanced monitoring obligations on VASPs offering margin services.
Margin trading allows users to open larger positions using borrowed capital, potentially increasing both profits and losses. By tightening leverage, VARA aims to reduce the risk of systemic market shocks during periods of high volatility.
Additionally, a new framework for token distribution has been introduced. This includes clear licensing prerequisites, investor protection measures, and stringent marketing restrictions, particularly for retail-facing promotions.
“It’s about aligning with global conduct expectations and closing observed regulatory gaps,” the VARA spokesperson stated, emphasizing the importance of ethical marketing in safeguarding retail investors.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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