Dubai releases regulatory framework for derivatives trading on cryptocurrency exchanges

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ME News reports that on March 31 (UTC+8), the Dubai Virtual Assets Regulatory Authority (VARA) issued the official regulatory framework for crypto exchange-traded derivatives, which permits retail clients to participate in trading after passing suitability assessments. The new regulations include requirements for client suitability, leverage and margin controls, asset segregation, disclosure standards, and the regulator’s intervention powers. The leverage limit for retail investors is set at 5x. Exchanges must ensure that if a product is not suitable for certain customer groups, access to it is restricted. VARA stated that during periods of market stress or trading disorder, regulators have the authority to intervene, including suspending products, requiring liquidations, and increasing margin requirements, and in emergency situations, they may take immediate action without prior notice. (Source: PANews)

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