Dubai Sets Crypto Derivatives Rules, Allows Retail With Leverage Cap

Dubai's Virtual Assets Regulatory Authority (VARA) has established a new regulatory framework, detailed in Version 2.1 of its Exchange Services Rulebook, governing crypto exchange-traded derivatives (ETDs) offered by licensed virtual asset service providers (VASPs) in the emirate. The framework introduces formal guardrails covering client suitability, leverage controls, asset segregation, and disclosure standards. Notably, the rules permit retail participation, subject to strict suitability assessments, but impose a maximum leverage cap of 5:1 (minimum 20% initial margin), which is significantly more conservative than leverage offered by some offshore platforms. VARA retains broad authority to intervene during market stress, including suspending products or requiring position liquidations. This formalization expands upon earlier pilot programs, standardizing requirements across licensed firms.

(Source：Cointelegraph)