Dubai’s crypto regulator introduces Version 2.0 of Rulebooks to enhance market integrity and risk oversight

Dubai’s Virtual Assets Regulatory Authority (VARA) has given licensed digital asset companies until June 19 to comply with its updated activity-based Rulebooks.

Dubai's Virtual Assets Regulatory Authority (VARA) has given licensed digital asset companies until June 19 to comply with its updated activity-based Rulebooks to enhance market integrity and risk oversight, the regulator announced on Friday.

The regulator, which comes under the umbrella of the Central Bank of the United Arab Emirates (CBUAE), said it had also introduced Version 2.0 of the Rulebooks.

The changes bring consistency across all activity-based rules defining core operational terms, common across several regulated activities.

VARA's team will engage with licensed entities and expects the companies to comply with the updated rules after a 30-day transition period.

"In line with global regulatory best practices, a 30-day transition period has been granted to all impacted virtual asset service providers (VASPs), with full compliance required by 19 June 2025," VARA wrote.

The regulator added that the updated rules will foster deeper integration with global standards and best practices.

The updated supervisory mechanisms span several regulated activities:

* advisory services

* broker-dealer services

* custody services

* exchange services

* lending and borrowing services

* virtual asset (VA) management and investment services

* VA transfer and settlement services.

"The update will also align risk management and disclosure obligations, where activities overlap, in areas like brokerage, custody and exchange. The aim was to reduce ambiguity and help VASPs navigate cross-functional compliance more easily," a VARA spokesperson told Cointelegraph.

The updates also saw VARA tighten leverage thresholds and mandate clearer collateralisation standards. It also enhanced the monitoring obligations for VASPs offering margin trading.

"Margin trading allows traders to control large positions with smaller amounts of capital, which amplifies both gains and losses.

"The updated rules align with broader stiplulations on capital adequacy and set out more explicit requirements for reporting obligations, consumer protection and anti-money laundering (AML) in the relevant sections of the updated activity-based rules."

The regulator also introduced a new section on token distribution that covers licensing prerequisites, investor protections and marketing restrictions.

The spokesperson added that the updates bring the regulator's rules more into line with global norms.

"It's about aligning with global conduct expectations and closing observed regulatory gaps. The goal is to prepare the ecosystem for the next stage of Web3 innovation."