Dubai releases regulatory framework for derivatives trading on cryptocurrency exchanges

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ME News update, on March 31 (UTC+8), the Dubai Virtual Assets Regulatory Authority (VARA) released a formal regulatory framework for crypto exchange-traded derivatives, allowing retail customers to participate in trading after passing 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. Retail investors’ leverage limit is 5x. Exchanges must ensure that access is restricted when a product is not suitable for certain customer segments. VARA said that during periods of market stress or trading disorder, regulators have the authority to take intervention measures, including pausing products, requiring positions to be closed, and increasing margin requirements, and in emergencies they may require immediate action without prior notice. (Source: PANews)

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