Dubai VARA Tightens Crypto Margin Trading Rules

Dubai's Virtual Assets Regulatory Authority (VARA) has released Version 2.0 of its crypto Rulebooks, introducing stricter controls on margin trading, token distribution, and collateral wallet arrangements to enhance market integrity and risk management. The updated framework imposes tighter leverage and collateral requirements for crypto margin trading, bringing broker-dealers and digital wallets under clearer regulatory oversight to align with global standards. Licensed digital asset companies in Dubai have been granted a 30-day transition period to comply, with full enforcement required by June 19, 2025. VARA's approach reflects its ambition to establish Dubai as a leading global crypto hub by fostering a responsible, scalable, and well-regulated ecosystem, supported by ongoing engagement with virtual asset service providers. Major crypto exchanges like Binance, Crypto.com, and OKX have previously benefited from VARA's regulatory clarity, and these updates build on that foundation to mature the regulatory landscape based on international best practices and real-world licensing experience. The regulator emphasizes that compliance is mandatory, signaling a firm stance while encouraging innovation under robust supervision.