TechFlow News, March 31: According to Cointelegraph, the Dubai Virtual Assets Regulatory Authority (VARA) has officially released its regulatory framework for Exchange-Traded Derivatives (ETD) — the “Exchange Services Rulebook V2.1” — applicable to licensed Virtual Asset Service Providers (VASPs) operating in Dubai. The framework covers core requirements including client suitability assessments, leverage and margin controls, asset segregation, disclosure obligations, and regulatory intervention powers.
Retail investors may participate only after passing a rigorous suitability assessment—including evaluations of experience, financial status, and risk tolerance—but are subject to a maximum leverage ratio of 5:1 (minimum initial margin of 20%), significantly lower than the up to 100x leverage previously offered by platforms such as Binance and Bybit. VARA also reserves the right to take emergency intervention measures during market anomalies—including product suspensions, forced liquidations, and increased margin requirements—and may implement such actions immediately, without prior notice, in urgent situations.
