Enhancing Market Integrity While Supporting Innovation
Dubai’s Virtual Assets Regulatory Authority (VARA) has just unveiled Version 2.0 of its activity-based Rulebooks, reinforcing the city’s position as a global leader in regulated digital finance. This move is a major step forward in building a secure, transparent, and innovation-friendly virtual asset ecosystem.
The updated regulations are part of VARA’s strategy to create a future-proof regulatory environment—one that promotes responsible innovation while ensuring market discipline and investor protection.
What’s New in Version 2.0?
VARA’s revised Rulebooks introduce several refinements across a broad spectrum of regulated virtual asset (VA) activities, including:
- ✅ Advisory services
- ✅ Broker-dealer services
- ✅ Custody services
- ✅ Exchange services
- ✅ Lending and borrowing
- ✅ VA management and investment services
- ✅ VA transfer and settlement services
- ✅ Virtual Asset Issuance Rulebook
These updates aim to ensure all virtual asset service providers (VASPs) operate with greater transparency, security, and compliance.
Key Enhancements at a Glance
Some of the most notable upgrades in Version 2.0 include:
- Tighter controls on margin trading and token distribution
- Clearer definitions for collateral wallet arrangements
- Unified compliance requirements across all licensed activities
These refinements are expected to improve risk oversight, promote market discipline, and boost operational resilience, all essential to fostering trust in the virtual asset ecosystem.
According to VARA, the changes reflect Dubai’s ongoing commitment to global best practices, ensuring its market remains attractive to both investors and innovators.
Transition Timeline and Guidance
To help ensure a smooth rollout, VARA has announced a 30-day transition period for all affected VASPs. Full compliance is required by 19 June 2025.
VARA’s Supervision Teams will directly engage with licensed entities to offer activity-specific guidance. This collaborative approach aims to support firms in aligning with the updated requirements without disrupting operations.
The full updated Rulebooks are now available for public access via VARA’s official website.
A Step Toward Safer and Smarter Crypto Markets
Dubai has been actively positioning itself as a global hub for virtual assets, with VARA leading the charge on setting up a balanced regulatory framework. The latest rulebook update:
- Strengthens oversight mechanisms
- Encourages innovation within secure guardrails
- Aligns with international regulatory standards
By refining its approach, VARA aims to provide clarity and confidence to all stakeholders—from startups and established exchanges to investors and institutional players.
Why This Matters
The release of Version 2.0 is not just a regulatory update—it’s a strategic move that enhances long-term market sustainability. It reinforces Dubai’s mission to lead in next-gen finance while safeguarding against the kinds of risks that have plagued unregulated crypto markets elsewhere.
For VASPs operating in or entering Dubai, these updates offer a clearer path forward, grounded in transparency, resilience, and innovation.