Dubai's Virtual Assets Regulatory Authority (VARA) Has Established a New Deadline for All Cryptocurrency Exchanges and Service Providers

Dubai’s Virtual Assets Regulatory Authority (VARA) has established a new deadline for all cryptocurrency exchanges and service providers to comply

Dubai's Virtual Assets Regulatory Authority (VARA) has set a new الموعد for all cryptocurrency exchanges and service providers to comply with its updated regulatory framework.

Earlier this week, VARA published Version 2.0 of its activity-based Rulebooks. These updates include improved supervisory mechanisms across seven regulated virtual asset activities.

This ranges from exchange services to lending, and also includes greater market safeguards while maintaining Dubai's overarching approach to promoting rapid technological هيا.

Updated VARA Rulebooks Include Seven Key Virtual Asset Activities

The updated VARA rulebooks include improvements across seven key regulated virtual asset activities.

This includes advisory services, broker-dealer services, custody services, and exchange services. It also includes lending and borrowing services, virtual asset management and investment services, and virtual asset transfer and settlement services.

Version 2.0 introduces stronger controls specifically around margin trading and token distribution services, which are areas that have seen increased activity in Dubai's growing cryptocurrency market.

The revisions also provide clearer definitions for collateral wallet arrangements.

According to the VARA press release, these updates are designed to harmonize compliance requirements across all licensed activities.

This promotes greater market discipline, risk transparency, and operational resilience throughout Dubai's virtual asset ecosystem.

“Our commitment remains to ensuring that innovation and compliance go hand in hand. These rulebook updates further strengthen the foundations of a responsible, scalable ecosystem,” said Ruben Bombardi, General Counsel and Head of Regulatory Enablement at VARA.

Dubai is quickly becoming a leading hub for cryptocurrency and blockchain technology with VARA's comprehensive regulatory approach.

Established in March 2022 under Law No. 4 of 2022, VARA serves as the competent entity responsible for crypto.

It looks after regulating, supervising, and overseeing virtual assets and related activities across all commercial zones in Dubai.

The regional impact of Dubai's regulatory framework is evident in recent business developments.

Ripple has announced two new major customers in the UAE using Ripple Payments, as the company highlights that 64% of Middle East and Africa finance leaders view faster payments and settlement times as the primary motivation for incorporating blockchain-based currencies.

Ripple reports increasing demand for its payment solutions across the Middle East from both crypto-native firms and traditional financial institutions. The announcement by Ripple comes as CME Group is launching XRP futures contracts today.