Dubai regulators set a compliance deadline for updated Crypto Assets rules.

Source: Cointelegraph Original: "Dubai regulators set compliance deadline for updated cryptocurrency rules"

Dubai's cryptocurrency regulatory authority requires licensed digital asset companies to comply with the updated activity rules manual by June 19 to enhance market integrity and risk regulation.

On May 19, the Dubai Virtual Asset Regulatory Authority ( VARA ) announced the release of version 2.0 of its rules manual.

The regulatory authority stated that it has strengthened its control over margin trading and token distribution services, unified the compliance requirements for all licensed activities, and provided clearer definitions for collateral wallet arrangements.

The VARA team will communicate with licensed entities and expects these companies to comply with the updated rules after a 30-day transition period.

"According to global regulatory best practices, all affected virtual asset service providers (VASPs) will have a 30-day transition period and are required to be fully compliant by June 19, 2025," VARA stated in the announcement.

VARA emphasizes that it has strengthened the supervision mechanisms for multiple regulated activities. This includes consulting, broker-dealers, custody, exchanges, lending, virtual asset ( VA ) management and investment, as well as VA transfer and settlement services.

A VARA spokesperson told Cointelegraph that these updates will bring consistency to the definitions of core operational terms in all activity-based rules. The spokesperson cited examples such as "customer assets," "qualified custodians," and "collateral requirements" which have been given more unified definitions in the updates.

This update also coordinates risk management and disclosure obligations, particularly in areas where activities such as brokerage, custodianship, and exchanges overlap.

"Our goal is to reduce ambiguity and help VASPs handle cross-functional compliance matters more conveniently," VARA told Cointelegraph.

Regarding margin trading, a VARA spokesperson stated that they have tightened leverage thresholds, required clearer collateral standards, and strengthened the monitoring obligations of VASPs providing this functionality.

Margin trading allows traders to control larger positions with less capital. It can amplify both profits and losses. Tightening the leverage used by traders helps to limit the risk of large-scale liquidations during market downturns.

This cryptocurrency regulatory agency has introduced a new chapter on token distribution, setting forth licensing prerequisites, investor protection measures, and marketing restrictions. The spokesperson particularly emphasized the marketing restrictions, especially concerning "retail-oriented products."

"This is to align with global behavioral standards and address the regulatory gaps that have been observed," said a VARA spokesperson.

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