Dubai’s Virtual Assets Regulatory Authority (VARA) has released a new regulatory framework governing crypto exchange-traded derivatives (ETDs), detailing how licensed crypto companies may offer such products within the emirate. The framework is set out in Version 2.1 of VARA’s Exchange Services Rulebook and was announced on Tuesday. It applies to licensed virtual asset service providers offering exchange services in Dubai.
The rulebook establishes requirements across several areas, including client suitability, leverage and margin controls, asset segregation, disclosure standards, and regulatory intervention powers. VARA’s general counsel, Ruben Bombardi, described derivatives as a natural progression for virtual asset markets while noting they require a higher standard of governance. The framework represents a formal expansion of Dubai’s crypto regulations beyond spot trading into higher-risk product categories.
Both institutional and retail investors may participate under the new rules, though access is subject to risk-based controls. Retail investors face strict suitability assessments covering their experience, financial position, and risk tolerance, as well as enhanced disclosure requirements. A VARA spokesperson confirmed that firms must restrict access where products are deemed unsuitable for a particular client segment.
Retail leverage is capped at a maximum of 5:1, requiring a minimum initial margin of 20%. This is notably more conservative than the leverage levels available on some offshore crypto derivatives platforms. Exchanges such as Binance and Bybit have previously permitted maximum leverage of up to 100x or higher on certain contracts, illustrating the stricter approach to retail risk embedded in VARA’s framework.
VARA retains broad authority to intervene during periods of market stress or disorderly trading, including situations that carry risks of systemic impact. Available measures include suspending products, requiring position liquidations, increasing margin requirements, and strengthening risk controls such as insurance funds. In urgent scenarios, the regulator can require immediate action without prior notice in order to limit market disruption.
The new framework builds on earlier efforts to introduce regulated crypto derivatives in the UAE. In 2024, crypto exchange OKX offered derivative products exclusively to qualified and institutional investors who met strict eligibility thresholds. In July 2025, OKX launched a pilot program extending retail access to futures, options, and perpetual contracts under a VARA framework, with leverage of up to 5x.
The updated rulebook formalizes and expands those earlier initiatives by setting standardized requirements across all licensed firms and extending access under clearer, enforceable conditions. The move signals Dubai’s intent to build a comprehensive regulatory structure for virtual asset markets that goes beyond foundational spot trading rules.
Originally reported by CoinTelegraph.
