Dubai’s Virtual Assets Regulatory Authority (VARA) has revised its virtual asset rulebooks, focusing on tightening oversight of margin trading, custody services, and token issuance. The updated regulations, effective immediately, reflect Dubai’s commitment to enhancing investor protection in the rapidly evolving crypto landscape.

One of the most significant changes includes stricter rules around margin and leveraged trading. Virtual asset service providers (VASPs) must now implement tighter internal controls and limit leverage offerings to retail clients. The aim is to reduce risk exposure for less experienced investors while maintaining Dubai’s competitive edge as a global crypto hub.

The new framework also introduces more robust requirements for firms dealing with virtual asset custody. These include increased standards for internal audit practices, data protection, and contingency planning. Issuers of proprietary tokens must now meet clearer disclosure obligations, particularly regarding tokenomics and associated risks, before listing or distribution.

According to VARA, these updates are part of a broader initiative to align Dubai’s digital asset policies with international best practices. The authority received feedback from licensed VASPs operating under the 2023 guidelines and made adjustments accordingly.

Licensed firms are expected to review and implement the updated rules immediately. VARA will begin monitoring compliance through enhanced reporting…