Dubai VARA gives VASPs until June 19 to comply with new rulebook guidelines

Dubai’s Virtual Assets Regulatory Authority has given virtual asset service providers until June 19 to comply with Version 2.0 of its activity-based Rulebooks in its ongoing push to strengthen crypto market integrity and risk oversight. On May 19, VARA in Dubai announced that it has released Version 2.0 of its activity-based Rulebooks, setting a deadline of June 19 for all VASPs to comply with the updated regulations. The revised Rulebooks introduce strengthened requirements across advisory, broker-dealer, custody, exchange, lending and borrowing, asset management, and transfer and settlement services. Key updates in Version 2.0 include enhanced controls on margin trading and token distribution, clearer definitions related to collateral wallet arrangements, and standardized compliance obligations across all licensed activities. A 30-day transition period has been granted to allow affected VASP s time to implement the necessary changes. VARA stated that its Supervision Teams will provide direct support to licensed entities to assist with activity-specific compliance during the transition period. “Our commitment remains to ensuring that innovation and compliance go hand in hand. These rulebook updates reinforce the foundations of a responsible, scalable ecosystem,” said Ruben Bombardi, General Counsel and Head of Regulatory Enablement at VARA. You might also like: Dubai’s VARA sets sights on deanonymizing crypto whales: report This introduction of Rulebook Version 2.0 builds on VARA ’s broader push to strengthen crypto market integrity and protect investors through clearer rules and stricter enforcement. Notably, in October last year, the authority cracked down on seven crypto entities operating without proper authorization, issuing fines between 50,000 and 100,000 AED. Alongside the penalties, the firms were ordered to halt their operations and stop promoting virtual asset services. Another recent move in that direction was VARA’s announcement in February this year of its plans to mandate the disclosure of crypto whale identities, requiring VASPs to report the real-world identities of major token holders. You might also like: Dubai’s crypto regulator VARA warns against meme coin promotions

Source: crypto.news