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:

• Advisory services

• Brokerage operations

• Custody and safekeeping

• Crypto trading platforms

• Lending and borrowing

• Asset management and investment

• 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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VARA: Only Approved Firms Can Participate

In a joint statement with the Dubai Land Department (DLD), the Virtual Assets Regulatory Authority (VARA) emphasized that the pilot project, launched on March 19, is limited to a select group of companies that have received official approval from both regulatory bodies.

“No organization without explicit authorization from DLD and VARA is allowed to take part,” the statement read. “Any claims to the contrary are misleading and could lead to legal consequences.”

The regulator refrained from disclosing the names of the firms involved in these misleading claims.

Tokenized Property Market Could Hit $16 Billion by 2033

The initiative is part of Dubai’s broader vision to become a global hub for digital assets and blockchain technology. It’s projected that by 2033, tokenized real estate transactions could account for 7% of all property deals, reaching an estimated 60 billion dirhams (approx. $16 billion) in total volume.

Caution Ahead of Major Industry Event

This warning from VARA comes just days before the city hosts the Token 2049 conference. In a recent observation, on-chain investigator ZachXBT noted that such large-scale events often attract a higher-than-average number of scams and misleading projects.

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