VARA’s New Playbook for Crypto Derivatives: What Dubai’s Crypto Firms Must Now Follow

Dubai's Virtual Assets Regulatory Authority (VARA) has released Version 2.1 of its Exchange Services Rulebook, formalizing regulations for crypto exchange-traded derivatives (ETDs) for the first time. The framework permits both institutional and retail participation, but imposes strict controls on retail access, including a maximum leverage limit of 5:1, requiring a minimum 20% initial margin. Licensed Virtual Asset Service Providers (VASPs) must conduct thorough suitability assessments for retail clients, restrict access to unsuitable products, and ensure margin accounts are strictly segregated from standard trading accounts, prohibiting the use of one client's funds for another's margin positions. Furthermore, VARA retains broad emergency powers to intervene during market stress, such as suspending products or increasing margin requirements, and mandates that VASPs maintain an insurance fund for ETD services.

(Source：BeInCrypto)