Dubai's VARA Announces New Compliance Deadline of June 19 for Crypto Exchanges

Dubai's Virtual Assets Regulatory Authority (VARA) has announced a new compliance deadline of June 19 for crypto exchanges.

Dubai's Virtual Assets Regulatory Authority (VARA) has set a new compliance deadline of June 19 for cryptocurrency exchanges operating in the emirate, according to a report by.

What Happened: Announcing the updates in a press statement, VARA released Version 2.0 of its foundational rulebooks. The updated rules covered seven regulated virtual asset activities with new supervisory standards.

The new legislation is designed to further strengthen market discipline and resilience while supporting the ongoing innovation in Dubai's rapidly expanding cryptocurrency ecosystem.

Among the key changes, VARA introduced clearer operational rules for margin trading and token distribution. The new rules are designed to increase risk transparency and investor protection.

These updates follow observations of increased activity in these sectors across Dubai's crypto market, highlighting the need for stronger oversight to mitigate potential systemic risks and maintain the market's integrity.

The rulebooks also define standard arrangements for collateral management in wallet formats, ensuring consistency in custody and risk management practices.

“We expect all VARA service providers to apply these measures uniformly, regardless of their specific operational scope. Each activity will have the latest compliance expectations to meet by June 19, 2024, as we strive to create a seamlessly integrated environment for sustainable development,” a VARA spokesperson stated.

Why It's Important: The new rules are part of a broader effort by the Gulf nation to become a global hub for cryptocurrency and Web3 companies. Dubai, in particular, is positioning itself as a regional leader in cryptocurrency regulation.

Earlier this year, began rolling out a new licensing regime for cryptocurrency exchanges and other service providers.

Earlier this month, reported that behemoth is now turning its attention to the UAE market. The company is reportedly planning to launch its own money transfer services in the country, which could open up new opportunities for both businesses and consumers.

Also Read: