Dubai continues to lead the way in the development of virtual assets. The Virtual Assets Regulatory Authority (VARA) has released its updated rulebook, known as VARA 2.0, introducing clearer and stricter requirements for crypto exchanges and services in the region.
New VARA Rules and Their Goals
The updated VARA rules include new compliance deadlines set for June 19, 2025, prompting crypto firms to act swiftly. The primary aim of this initiative is to protect the market while keeping Dubai open to innovations in the rapidly evolving crypto landscape.
Key Areas of Virtual Asset Regulation
The new rules focus on seven main areas of virtual asset activity, including exchange services, custody, advisory services, and broker-dealer operations. They also encompass lending, borrowing, asset management, and transfer services.
Dubai’s Influence on the Crypto Market Beyond Its Borders
Since VARA was established under Law No. 4 of 2022, Dubai has gained a reputation as a leading destination for crypto investments. The updates signal a strengthening of the city’s role in the crypto world, as evidenced by the increasing interest from major players in the region.
Thus, the VARA 2.0 update marks a significant move towards creating a safer and more transparent environment for crypto firms, reaffirming Dubai's position as a key hub for virtual assets.
