The Dubai cryptography regulator has given digital asset companies under license until June 19 in order to comply with its rules of updated rules based on activity to improve market integrity and risk surveillance.
On May 19, the Virtual Assets Regulatory Authority (Vara) of Dubai announced that it had published version 2.0 of the rules.
The regulator said that it had strengthened the controls around margin trading services and tokens distribution, harmonized compliance requirements in all licensed activities and gave clearer definitions for collateral wallet arrangements.
The VARA team will engage with approved entities and expect companies to comply with the updated rules after a 30 -day transition period.
“In accordance with global regulatory practices, a 30 -day transition period has been granted to all virtual asset service providers [VASPs]With the full compliance required by June 19, 2025, ”wrote Vara.
Vara improves supervision mechanisms
Vara stressed that he had improved the supervision mechanisms in several regulated activities. This includes advice, broker, custody, exchanges, loans and loans, virtual asset management services (VA) and transfer and regulation services VA.
A spokesperson for Vara told Cintelelegraph that updates will bring consistency in all rules based on activity defining the basic operational terms. The spokesperson has given examples of terms such as “customer assets”, “qualified guards” and “collateral requirements” as some of the more coherent terms in the update.
The update has also aligned risk management and disclosure obligations, where activities overlap, in areas such as brokerage, guard and exchange.
“The objective was to reduce ambiguity and help goals to sail more easily on transverse compliance,” Vara told Cointelegraph.
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The Dubai regulator tightens the lever thresholds for margins trading
Regarding margins trading, Vara spokesperson said he has tightened leverage, forced to lighter and improved the VALP monitoring obligations offering this functionality.
Margin trading allows traders to control large positions with smaller amounts of capital. It amplifies both gains and losses. The tightening of the effect that traders use helps limit the risk of generalized liquidation in a slowdown in the market.
The crypto regulator has introduced a new section on the distribution of tokens which defines the prerequisites, investor protections and marketing restrictions. The spokesman underlined the marketing restrictions, in particular for “retail offers”.
“It is a question of aligning the expectations of global driving and the closing of the regulatory gaps observed,” said Vara spokesperson.
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