Dubai releases regulatory framework for derivatives trading on cryptocurrency exchanges

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ME News message on March 31 (UTC+8). The Dubai Virtual Assets Regulatory Authority (VARA) has released a formal regulatory framework for crypto exchange-traded derivatives, allowing retail customers to participate in trading after completing a suitability assessment. The new rules cover requirements such as customer suitability, leverage and margin controls, asset segregation, disclosure standards, and the regulator’s power to intervene. The retail investor leverage limit is 5x. Exchanges must ensure that if a product is not suitable for certain customer groups, access to it is restricted. VARA said that during periods of market stress or trading disorder, regulators have the authority to take intervention measures, including pausing products, requiring position closures, and raising margin requirements; in emergencies, they may require immediate action without prior notice. (Source: PANews)

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