Dubai’s Licensed Digital Asset Firms To Fully Comply With The Updated Rulebooks By June 19 Deadline

While most jurisdictions across the globe are yet to fully adapt, the UAE, particularly Dubai, with its progressive business landscape, has already positioned itself as a global hub for virtual assets. The Virtual Assets Regulatory Authority (VARA) is the competent entity responsible for regulating, supervising, and overseeing virtual assets and their activities in all zones across the emirate of Dubai, excluding the Dubai International Financial Centre (DIFC).

In a recent announcement, the VARA issued a compliance deadline for the Emirate’s licensed digital asset firms, such as crypto companies, to adhere to its revised set of rulebooks. On May 19^th 2025, a transition period of 30 days was declared, establishing 19^th June 2025 as the deadline for full compliance. The Virtual Asset Service Providers (VASPs) in the jurisdiction are expected to adapt to the newly set rules within this 30-day transition period, reducing the risks of market disruption. The announcement followed the publication of Version 2.0 of the activity-based Rulebooks, which aim to strengthen market integrity and risk oversight in virtual asset transactions.

The updated Rulebooks will provide an improved supervisory structure for virtual asset activities, including their management, investment, transfer and settlement services, advisory services, broker-dealer services, and custody and lending services. In areas where business activities may overlap, such as brokerage, custody, and exchange services, and for firms operating across multiple service categories, the new rules will align their risk management and disclosure obligations, eliminating contradictory requirements and compliance challenges posed by earlier rules.

Key Refinements in the Newly Set Rulebook Version 2.0

• Strengthened Control: Financial activities such as margin trading and token distribution services shall now entail strengthened and robust controls, ensuring stricter compliance, oversight, and safeguards in their operation.
• Clearer Definitions: Version 2.0 of the activity-based Rulebooks shall provide clearer definitions for digital assets like “collateral wallet arrangements,” “qualified custodians,” and “client assets,” ensuring full legal clarity and transparency, thereby reducing risks in digital asset transactions.
• Standardised Compliance Requirements: All licensed VA activities in the emirate shall now entail harmonised and consistent compliance requirements.
• Alignment with Global Standards: The updated Rulebooks come in alignment with the global standards and best practices, providing a more mature framework for the companies, thereby reinforcing the emirate’s status as a magnet for further investment and innovation.

These key refinements in the Rulebooks are considered to significantly enhance market discipline, risk transparency, and long-term operational resilience across VA market participants and their operations. The regulatory authority has also indicated that the VARA’s Supervision teams shall work closely with each licensed entity by providing them with tailored, direct, and activity-specific guidance whenever necessary.

The full text of Version 2.0 is publicly available at VARA’s Rulebooks portal:
https://rulebooks.vara.ae/

Ruben Bombardi, General Counsel and Head of Regulatory Enablement at VARA, highlighting the significance of the new regulations, added, “Our commitment remains to ensuring that innovation and compliance go hand in hand. These rulebook updates reinforce the foundations of a responsible, scalable ecosystem.”

The progressive regulatory climate with the now revised Rulebooks serves as a bold initiative in Dubai’s long-standing commitment to transforming the emirate into an innovation powerhouse for virtual assets companies and investors.