Dubai releases regulatory framework for derivatives trading on cryptocurrency exchanges

ChainCatcher notes, citing a report by Cointelegraph, that the Dubai Virtual Asset Regulatory Authority has issued a formal regulatory framework for exchange-traded crypto derivatives, allowing retail customers to participate in trading after undergoing suitability assessments.

The new rules cover requirements such as customer suitability, leverage and margin controls, asset segregation, disclosure standards, and the regulator’s powers to intervene. The retail investor leverage cap is 5x, and exchanges must ensure that access is restricted if a product is not suitable for certain customer groups. VARA states that during periods of market stress or trading chaos, regulators have the authority to take intervention measures, including pausing products, requiring liquidation, and increasing margin requirements; in emergencies, they may require immediate action without prior notice.

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