Dubai’s Virtual Assets Regulatory Authority (VARA) has sent surprises through the crypto world, issuing a strict June 19, deadline for firms to align with its updated regulations. This move, announced today, reveals Dubai’s ambition to be a global crypto hub while ensuring a secure, transparent market.
Why the New Rules?
The latest VARA regulations stem from Dubai’s drive to balance innovation with investor protection. Recent market volatility, particularly in speculative assets like memecoins, prompted VARA to revise its Broker-Dealer and Exchange Rulebooks. Posts on X highlight stricter controls on margin trading, with leverage limits and higher collateral standards to curb risky practices.
VARA aims to align with global risk benchmarks, encouraging trust in Dubai’s crypto ecosystem. The authority’s proactive stance, backed by its ability to restrict non-compliant platforms, proves that the country is committed to stabilizing the digital asset market. With new rules guarding leverage and collateral requirements, crypto firms must act fast to comply or face hefty penalties
Not New
Dubai’s crypto scene is no stranger to regulatory deadlines. In 2023, VARA briefly suspended BitOasis’ license for not meeting compliance timelines, only reinstating it after the firm adhered to stricter conditions. Similarly, VARA’s 2022 crypto marketing rules required firms to provide clear risk disclosures, with non-compliance leading to platform restrictions.
BitOasis, for instance, secured a full Virtual Asset Service Provider license in 2024 after rigorous cooperation with VARA, enabling expanded trading services. These cases show Dubai’s pattern of setting clear rules, enforcing deadlines, and rewarding compliance with market access. Firms that adapted, like BitOasis, thrived, while laggards faced penalties or exclusion.
VARA’s June 19 deadline strengthens Dubai’s position as a leader in regulated crypto innovation. This regulatory clarity paves the way for milestones like Ripple’s Dubai Financial Services Authority (DFSA) license, secured in March 2025. Ripple’s partnership with Zand Bank to deliver blockchain-based payment services highlights how compliance unlocks opportunities in city’s $400 billion trade hub.
As VARA ensures a secure market, firms like Ripple and Zand Bank are poised to drive blockchain adoption, blending cutting-edge tech with Dubai’s robust regulatory framework.
