Dubai’s regulator updates its rulebook to ensure more compliance

The Virtual Assets Regulatory Authority (VARA) has published Version 2.0 of its activity-based Rulebooks, in an effort to further future proof Dubai’s regulatory framework which balances innovation with robust market safeguards.

As per the press release, the updated Rulebooks include enhanced supervisory mechanisms across the following regulated virtual asset (VA) activities including, advisory services, crypto broker-dealer services, custody services, crypto exchange services, crypto lending and borrowing services, virtual asset management and investment services and virtual asset transfer and settlement services.

Key refinements in Version 2.0 include strengthened controls around margin trading and token distribution services, clearer definitions for collateral wallet arrangements, and harmonized compliance requirements across all licensed activities.

Ruben Bombardi, General Counsel and Head of Regulatory Enablement VARA, said, “Our commitment remains to ensuring that innovation and compliance go hand in hand. These rulebook updates reinforce the foundations of a responsible scalable ecosystem.”

The updates are designed to promote greater market discipline, risk transparency, and operational resilience across Dubai’s VA ecosystem. In line with global regulatory best practices, a 30-day transition period has been granted to all impacted virtual asset service providers (VASPs), with full compliance required by 19 June 2025. The VARA Supervision Teams will be engaging directly with each licensed entity to provide activity-specific guidance as needed.

VARA Dubai was the first dedicated virtual assets regulator in the world. It has already licensed more than 30 VASPs including Binance, OKX, Crypto.com, Gate.io and others.