Dubai’s VARA Enhances Leverage Regulations for Crypto Margin Trading in Updated Trading Guidelines

Dubai’s regulatory authority for virtual assets, the Virtual Asset Regulatory Authority (VARA), has made enhancements to its regulations governing digital asset trading.

The Emirati regulatory body has implemented stricter controls regarding leverage and collateral requirements within its Broker-Dealer and Exchange Rulebooks. These changes aim to ensure that VARA’s guidelines meet global risk management standards, as indicated in their official announcement.

Additionally, VARA has expanded its rulebook to more effectively supervise segments of the cryptocurrency market that were previously less regulated, including broker-dealers and digital wallets.

The earlier regulations set by VARA have solidified the city’s position as a leading crypto center, with numerous cryptocurrency firms appreciating the clarity of the operational requirements. Leading exchanges like Binance, Crypto.com, and OKX have secured approvals from VARA.

The regulatory authority is now refining these existing rules to establish a more sophisticated framework, incorporating practical licensing knowledge and adhering to international best practices.

“These revisions to the rulebook strengthen the core principles of a responsible and scalable ecosystem,” stated Ruben Bombardi, General Counsel and Head of Regulatory Enablement at VARA, in a communicated response.