Emre Yumlu 
A new chapter is unfolding for crypto asset firms operating in Dubai. The Virtual Assets Regulatory Authority (VARA) has given licensed companies until June 19, 2025, to align with its updated, activity-based regulatory framework.
New Rulebook Aims to Strengthen Transparency and Market Safety
Released on May 19, the latest version of VARA’s rulebook—known as Version 2.0—introduces clearer definitions and stricter requirements across several core areas, including margin trading, token issuance, custodial wallets, and risk oversight. The objective is to provide a consistent structure for all regulated activities under VARA’s supervision.
VARA has announced that it will directly engage with licensed entities, with a 30-day transition period granted for implementation. The regulator emphasized that these updates are meant to reduce uncertainty and make regulatory compliance more streamlined across different services.
Expanded Oversight Across Core Services
VARA has enhanced its supervisory coverage across a broad range of activities, such as:
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Advisory services
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Brokerage operations
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Custody and safekeeping
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Crypto trading platforms
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Lending and borrowing
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Asset management and investment
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Virtual asset transfer and settlement
The revised framework also brings greater clarity to key terms like “client assets,” “qualified custodians,” and “collateral requirements,” helping service providers better understand and fulfill their obligations.
Tighter Controls on Margin Trading
Margin trading services are now subject to stricter leverage limits and clearer collateralization standards. VARA has also expanded monitoring duties for platforms offering such high-risk products.
Margin trading allows users to amplify positions with borrowed funds, which increases potential profits but also magnifies risks. By lowering leverage thresholds, the regulator aims to minimize mass liquidations during market downturns.
New Guidelines for Token Offerings and Promotions
The updated rulebook introduces a dedicated section focused on token distribution, detailing licensing prerequisites, investor protection standards, and restrictions on promotional activities. Special attention has been given to marketing rules, especially for retail-facing campaigns.
According to VARA, these measures are intended to align with global best practices and close existing gaps in oversight.
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