Dubai’s VARA Introduces Sweeping Rules On Crypto Derivatives & Margin

The rulebook, now live on VARA’s official portal, covers margin trading and exchange-traded derivatives (ETDs), and hands the regulator sweeping powers to intervene in market activity, including the ability to suspend trading and adjust margin thresholds on the fly.

Under the new framework, VASPs cannot offer margin trading unless their license explicitly permits it. Getting that approval is not a rubber stamp either.

Firms will need to submit full terms and conditions, a template margin trading agreement, and prove they have the systems and controls to back it up.

For ETDs, VARA has put in place a separate approval track. VASPs looking to list derivatives must show that the underlying virtual assets meet specific benchmarks, including analysis of circulating supply, projected future supply, and how concentrated ownership is.

For VASPs eyeing Dubai as a base, the message is clear: the bar for compliance is going up, and the days of operating in grey areas are numbered.

Source: Vara Rulebook

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