Dubai Regulator Establishes Compliance Deadline for Revised Cryptocurrency Regulations
Dubai’s cryptocurrency regulator has set a deadline of June 19 for licensed digital asset firms to adhere to its revised activity-based Rulebooks aimed at improving market integrity and risk management.
On May 19, Dubai’s Virtual Assets Regulatory Authority (VARA) declared the launch of Version 2.0 of the Rulebooks.
The regulator announced enhancements to controls regarding margin trading and token distribution services, standardized compliance requirements across all licensed activities, and clarified definitions for collateral wallet arrangements.
VARA plans to collaborate with licensed companies and expects them to meet the new regulations following a 30-day transition phase.
“To align with international regulatory standards, a 30-day transition period has been allocated for all affected virtual asset service providers [VASPs], with complete adherence required by June 19, 2025,” VARA stated.
VARA Augments Supervisory Framework
VARA emphasized its improvement of supervisory measures across various regulated activities. This encompasses advisory services, broker-dealer operations, custody, exchange functions, lending and borrowing, virtual asset (VA) management and investment, and VA transfer and settlement services.
A VARA representative informed Cointelegraph that the updates would promote uniformity in all activity-based regulations that define essential operational terms. Examples of these terms include “client assets,” “qualified custodians,” and “collateral requirements,” which have been more consistently defined in the new update.
The revisions also align risk management and disclosure responsibilities in overlapping areas such as brokerage, custody, and exchange.
“The objective was to minimize confusion and assist VASPs in navigating multi-faceted compliance more efficiently,” VARA shared with Cointelegraph.
Related: Dubai government agencies to link real estate registry with property tokenization
Dubai Regulator Tightens Margin Trading Leverage Limits
Margin trading enables traders to manage large positions using less capital, highlighting the potential for both amplified profits and losses. By limiting the leverage, the risks associated with widespread liquidations in market downturns can be reduced.
The crypto regulator added a new section on token distribution outlining licensing prerequisites, investor protections, and marketing restrictions, with an emphasis on restrictions for “retail-facing offers.”
“This aligns with global conduct expectations and seeks to address identified regulatory gaps,” the VARA spokesperson noted.
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