Dubai’s VARA imposes margin, governance, and disclosure rules on crypto trading and derivatives

Dubai’s Virtual Assets Regulatory Authority (VARA) has published its Exchange Services Rulebook, introducing mandatory governance, disclosure, and risk management standards for Virtual Asset Service Providers (VASPs) offering crypto derivatives. The framework covers margin trading and exchange-traded derivatives (ETDs), granting VARA significant oversight powers, including the ability to suspend trading and adjust margin requirements. VASPs must obtain explicit authorization to offer margin trading, demonstrating appropriate systems and client suitability assessments. The rules mandate segregated margin accounts and regular client statements, including early warning notifications for margin shortfalls. For ETDs, VARA requires approval based on the underlying asset’s standards and client risk assessments, alongside the establishment of an insurance fund. Furthermore, the rulebook mandates a code of conduct for trading venues, market surveillance data sharing with VARA, and specific requirements for board composition, including independent directors and disclosure of compensation details.

(Source：The Block)