Dubai moves to regulate crypto derivatives under new rulebook
The move comes amid rising demand for derivatives exposure in virtual asset markets, as regulators globally seek to address the risks associated with increasingly complex digital financial instruments
31 March, 2026
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Dubai Virtual Assets Regulatory Authority (VARA) has introduced a comprehensive regulatory framework for exchange traded derivatives (ETDs) in virtual assets, positioning Dubai among the first jurisdictions globally to regulate such products under a dedicated rulebook.
The framework, outlined in Version 2.1 of VARA’s Exchange Services Rulebook, allows licensed Virtual Asset Service Providers (VASPs) to offer derivatives products within a defined regulatory perimeter, subject to explicit authorisation and stringent compliance requirements.
The move comes amid rising demand for derivatives exposure in virtual asset markets, as regulators globally seek to address the risks associated with increasingly complex digital financial instruments.
VARA’s framework establishes binding requirements across key areas, including client suitability and classification for higher-risk products, margin and leverage controls, and the segregation of client assets to reduce systemic and counterparty risks. It also introduces enhanced disclosure obligations aligned with existing marketing regulations, alongside regulatory intervention powers that enable the authority to act during periods of market stress or misconduct.
The provisions are designed to support the development of more sophisticated market structures while ensuring appropriate safeguards for investors and maintaining market integrity.
Ruben Bombardi, general counsel at VARA, said: “Derivatives are a natural next step in the evolution of virtual asset markets, but they demand a higher standard of governance. VARA’s framework gives licensed providers a clear path to offering these products responsibly, while giving market participants confidence that Dubai’s virtual asset ecosystem operates under rules that are rigorous, enforceable, and designed to protect them. This is the best way to build a market that will stand the test of time.”
The updated rulebook forms part of VARA’s broader strategy to ensure innovation in the virtual assets ecosystem is supported by robust governance, transparency and effective regulatory oversight.
The Exchange Services Rulebook Version 2.1 is effective immediately and applies to all VASPs licensed to conduct exchange services in Dubai.
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