Dubai’s Virtual Assets Regulatory Authority (VARA) has established a new time limit for all cryptocurrency exchanges and service providers to follow its updated regulatory structure. In a recent announcement, Vara published an version 2.0 of its activity-based rules books. This includes seven regulated virtual asset activities, such as exchange services and better supervisory mechanisms in lending.
Dubai Var’s new Crypto rule book
Updated Vara rules booklets include improving seven major regulated virtual asset activities. The main focus is also on strengthening market safety measures and maintaining an approach to Dubai’s innovation. The comprehensive outline includes advisory services, broker-deale services, detention services and exchange services. It also includes lending and lending services, virtual asset management and investment services and virtual asset transfer and settlement services.
Version 2.0 specifically introduces strong control around margin trading and token distribution services. These are areas that have seen an increase in activity in Dubai’s growing cryptocurrency market. Amendments also provide a clear definition for the collateral wallet system.
As Vara press releaseThese updates are designed to harmonize the compliance requirements in all licensed activities. This promotes greater market discipline, risk transparency and operating flexibility in Dubai’s virtual asset ecosystem.
Ruben Bombardy, the general lawyer and head of regulator competence in the groom, emphasized the balance that the authority is to receive. “Our commitment remains to ensure that innovation and compliance run by hand. These rules updates strengthen the foundation of a responsible, scalable ecosystem.”
UAE strengthens the situation in the global crypto region
Dubai continues to maintain itself as a major center for cryptocurrency and blockchain technology through a broad regulatory approach of the groom. Established in March 2022 under law number 4 of 2022, the groom serves as a competent unit responsible for Crypto.
It looks after regulating, supervising and maintaining virtual assets and related activities in all commercial areas in Dubai. The regional impact of Dubai’s regulatory structure is clear in recent commercial developments. Ripple announced Two new major customers in the UAE using ripple payments, as the company said that 64% of the Middle East and Africa’s finance leaders see rapid payment and disposal time as the primary motivation to include blockchain-based currencies.
Ripple reported to both Crypto-country firms and traditional financial institutions, increasing the demand for their payment solutions in the Middle East. Ripple announced as CME Group XRP futures launching Today contract.
Vignesh karunanidhi
Vignesh Karunanidhi is an experienced Crypto journalist with an experience of about 7 years in the Cryptocurrency industry. He has contributed to several publications, including Watcherguru, Beincrypto, Milchroad, and more than 10,000 articles have been written.
Disclaimer: The material presented may include the author’s personal opinion and is subject to the market status. Do your market research before investing in cryptocurrency. The author or publication does not have any responsibility for your personal financial loss.
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