Quickly understand the history and background of various well-known coins

Dubai's VARA Tightens Digital Asset Trading Rules

Coin WorldMonday, May 19, 2025 5:40 am ET

1min read

Dubai's Virtual Asset Regulatory Authority (VARA) has announced significant updates to its rulebook for digital asset trading. The regulator has implemented stricter leverage controls and enhanced collateralization requirements through amendments in its Broker-Deal and Exchange Rulebooks. These changes aim to align VARA's regulations with global risk management standards, as stated in an official announcement released on Monday.

In addition to tightening controls on margin trading, VARA has introduced new sections in its rulebook to oversee areas of the crypto industry that were previously subject to lighter regulation. This includes broker-dealers and wallets, ensuring a more comprehensive regulatory framework. The updates reflect VARA's commitment to creating a mature and responsible ecosystem for digital assets, incorporating real-world licensing experience and international best practices.

VARA's initial rules have been instrumental in establishing Dubai as a leading crypto hub. The city has garnered praise from crypto companies for its clear and reasonable regulatory requirements, attracting major exchanges such as Binance, Crypto.com, and OKX, which have all received approvals under VARA. The recent updates to the rulebook further solidify Dubai's position as a forward-thinking region in the global crypto landscape.

Ruben Bombardi, General Counsel and Head of Regulatory Enablement at VARA, emphasized the importance of these updates. "These rulebook updates reinforce the foundations of a responsible, scalable ecosystem,” he stated. The enhancements are designed to foster a more secure and reliable environment for digital asset trading, benefiting both investors and the industry as a whole.

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.