Dubai’s VARA Sets New crypto Compliance Deadline
Dubai’s Virtual Assets Regulatory Authority (VARA) has set a new deadline for virtual asset service providers (VASPs). By June 19, all VASPs must comply with Version 2.0 of VARA’s activity-based Rulebooks. This move aims to bolster the integrity and oversight of the crypto market.
On May 19, VARA unveiled Version 2.0, which includes stricter requirements for various services like advisory, broker-dealer, and custody. The updates focus on margin trading, token distribution, and collateral wallet arrangements. These changes ensure clearer definitions and standardized compliance across all licensed activities.
A 30-day transition period is provided for VASPs to adjust. VARA’s Supervision Teams will offer direct support during this time. Ruben bombardi, General Counsel at VARA, emphasized the importance of balancing innovation with compliance. “these updates create a responsible and scalable ecosystem,” he said.
This initiative is part of VARA’s broader efforts to protect investors. In October, VARA fined seven unauthorized crypto entities between 50,000 and 100,000 AED. In February,VARA announced plans to mandate the disclosure of crypto whale identities,requiring VASPs to report major token holders.
VARA’s actions reflect a commitment to a transparent and secure crypto market. By setting clear rules and enforcing them, VARA aims to build trust and encourage responsible innovation in the virtual asset space.
