Dubai Sets Firm Deadline to Reinforce Crypto Compliance Rules
Dubai’s Virtual Assets Regulatory Authority (VARA) has announced a new compliance deadline for crypto firms operating under its jurisdiction. By June 19, all VARA-licensed virtual asset service providers must align with updated activity-based rulebooks. These new rules aim to enhance transparency, reduce risk, and strengthen investor protection, particularly in areas like margin trading and token distribution.
The regulatory update, issued on May 19, comes shortly after the Dubai Land Department’s Real Estate Tokenisation Project began collaborating with global Web3 firms. VARA emphasized that the revised policies are a continuation of efforts to build a responsible and scalable digital asset ecosystem.
The rulebooks now clarify compliance expectations across various activities, including crypto custody, advisory, exchanges, broker-dealer services, and lending operations. Ruben Bombardi, VARA’s General Counsel, noted that these changes reinforce operational resilience and market discipline. Importantly, firms will need to reassess client risk every three months and conduct detailed identity checks, including data such as nationality, address, and employment.
VARA to Guide Firms Through Transition
To support the transition, VARA’s Supervision Team will directly engage with licensed crypto businesses. These outreach efforts will ensure that firms receive tailored, activity-specific guidance. As part of this support, the authority will help service providers understand the operational requirements and how to implement them correctly.
The 30-day adjustment window reflects VARA’s intention to enforce compliance swiftly while giving firms a fair chance to adapt. Notably, the regulatory body also aims to encourage greater accountability and strengthen the digital economy’s resilience through these structured updates.
In its statement, VARA reiterated the importance of these changes, stating they are essential for long-term stability in the virtual asset sector. While the agency remains supportive of innovation, it continues to stress the need for vigilance amid rising fraud cases, especially those linked to speculative tokens like memecoins.
Dubai Advances Crypto Integration Despite Rising Risks
VARA’s actions follow broader efforts by Dubai to integrate blockchain and digital assets into its government infrastructure. For example, the Department of Finance recently partnered with Crypto.com, enabling residents to use crypto for government services.
Although challenges remain, Dubai is positioning itself as a global hub for secure and innovative virtual asset activities. With its proactive stance, the city aims to strike a balance between regulation and innovation in the ever-evolving crypto space.
