On May 19, 2025, the Dubai Virtual Assets Regulatory Authority (VARA) released Version 2.0 of its Regulatory Rulebook, marking a significant step forward in Dubai’s efforts to establish itself as a premier global destination for virtual asset activity.
This updated framework introduces a broad range of changes that impact all seven regulated virtual asset activities, including
- Broker-dealer services
- Custody
- Exchange operations
- Lending and borrowing
- Transfer and settlement
- Management and investment services
- Advisory services
Whether already licensed or preparing to enter the market, all Virtual Asset Service Providers (VASPs) must now act swiftly to ensure compliance with the updated requirements.
Significant VARA Changes
VARA’s latest updates introduce tighter controls on margin trading, including lower leverage limits, stricter collateral rules, and enhanced risk disclosures to reduce systemic risk.
The framework also imposes tougher disclosure and approval requirements for token issuers, especially those targeting retail investors, to boost transparency and investor protection.
To ease compliance, VARA has clarified definitions and harmonized standards across its rulebook—particularly beneficial for firms offering multiple regulated services.
The revised rules also stress stronger technology governance, requiring VASPs to implement robust cybersecurity, system testing, incident response, and third-party risk management.
Custody rules have been tightened as well, with stricter asset segregation, private key oversight, and clearer insurance and recovery guidelines, all aimed at reinforcing investor trust and market stability.
Why VASP Compliance is a Priority
VASP’s (Virtual Asset Service Providers) are required to achieve full compliance with the revised Rulebook by June 19, 2025, giving them a 30-day transition period from the date of issuance.
This underscores the urgency for firms to revisit their internal frameworks, address potential gaps, and ensure alignment with the new standards.
In this fast-evolving regulatory landscape, keeping pace with changes is not only essential for maintaining compliance, it is a strategic necessity.
Conclusion
If you are looking to understand how these updates impact your operations or need support in aligning your policies with VARA’s Version 2.0 framework, our team is ready to assist.
For more information on how Affiniax can ensure your compliance strategy is current, effective, and future-ready, contact Renu Gangwani, Head of Compliance, at mail@affiniax.com.
