Dubai’s VARA Sets June 19 Deadline for Exchanges to Comply with New Rules

Dubai’s Virtual Assets Regulatory Authority (VARA) has established a new deadline for all cryptocurrency exchanges and service providers to comply with its updated regulatory framework. In a recent announcement, VARA published Version 2.0 of its activity-based Rulebooks. This includes improved supervisory mechanisms across seven regulated virtual asset activities, such as exchange services and lending.

Dubai VARA’s New Crypto Rulebook

The updated VARA rulebooks include improvements across seven key regulated virtual asset activities. The main focus is on strengthening market safeguards and also maintaining Dubai’s innovation-friendly approach. The comprehensive framework covers advisory services, broker-dealer services, custody services, and exchange services. It also includes lending and borrowing services, virtual asset management and investment services, and virtual asset transfer and settlement services.

Version 2.0 introduces stronger controls specifically around margin trading and token distribution services. These are areas that have seen increased activity in Dubai’s growing cryptocurrency market. The revisions also provide clearer definitions for collateral wallet arrangements.

VARA to Harmonize Crypto Compliance Requirements

According to the VARA press release, these updates are designed to harmonize compliance requirements across all licensed activities. This promotes greater market discipline, risk transparency, and operational resilience throughout Dubai’s virtual asset ecosystem.

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

UAE Solidifies Position in Global Crypto Sector

Dubai continues to maintain itself as a leading hub for cryptocurrency and blockchain technology through VARA’s comprehensive regulatory approach. Established in March 2022 under Law No. 4 of 2022, VARA serves as the competent entity responsible for crypto.

It looks after regulating, supervising, and overseeing virtual assets and related activities across all commercial zones in Dubai. The regional impact of Dubai’s regulatory framework is evident in recent business developments. Ripple has announced two new major customers in the UAE using Ripple Payments, as the company highlights that 64% of Middle East and Africa finance leaders view faster payments and settlement times as the primary motivation for incorporating blockchain-based currencies.

Ripple reports increasing demand for its payment solutions across the Middle East from both crypto-native firms and traditional financial institutions. The announcement by Ripple comes as CME Group is launching XRP futures contracts today.

✓ Share:

Vignesh Karunanidhi

Vignesh Karunanidhi is a seasoned crypto journalist with nearly 7 years of experience in the cryptocurrency industry. He has contributed to numerous publications, including WatcherGuru, BeInCrypto, Milkroad, and authored over 10,000 articles

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.