Dubai’s Virtual Assets Regulatory Authority has introduced a formal framework governing crypto exchange-traded derivatives, setting out how licensed firms can offer these products.
The updated rulebook allows both institutional and retail investors to access crypto derivatives, with retail participation subject to strict suitability checks and enhanced disclosures.
Retail leverage is capped at 5:1, with firms required to enforce margin controls and restrict access where products are deemed unsuitable for certain clients.
“Derivatives are a natural next step in the evolution of virtual asset markets, but they demand a higher standard of governance,”
Said VARA general counsel, Ruben Bombardi.
The framework also mandates asset segregation, transparency standards and gives VARA authority to intervene during market stress, including suspending products or forcing liquidations.
This approach contrasts with offshore platforms like Binance and Bybit, which have historically offered leverage of up to 100x on some contracts.
The new rules formalise earlier pilot programmes in Dubai, expanding regulated access to crypto derivatives while aiming to reduce systemic risk in the market.