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Dubai’s Virtual Assets Regulatory Authority has introduced a new framework for exchange-traded crypto derivatives, bringing leveraged virtual asset products under a defined rulebook.
The update took effect immediately through Version 2.1 of VARA’s Exchange Services Rulebook and applies to licensed virtual asset service providers offering exchange services in Dubai. The framework sets rules for suitability checks, leverage and margin controls, asset segregation, disclosures, and regulator intervention.
Dubai’s crypto regulator said licensed firms can offer exchange-traded derivatives only within a clear regulatory structure. The framework is now part of Version 2.1 of the Exchange Services Rulebook, which sets binding requirements for firms that list, clear, or provide access to these products.
VARA said the rules apply to exchange-traded derivatives linked to virtual assets and not to bespoke over-the-counter arrangements. The regulator also said providers must obtain authorization and follow operational and conduct requirements before offering such products in the emirate.
The rulebook sets requirements across several areas tied to market conduct and risk management. These include client suitability and classification, especially for higher-risk products. It also introduces controls on margin, leverage, and liquidation to manage market exposure in a more structured way.
In addition, the framework requires firms to segregate client assets and accounts. VARA said providers must also meet stronger disclosure and communication standards that align with existing marketing rules. The regulator added that it has intervention powers, allowing it to step in during periods of market stress or in cases of misconduct.
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.”
He added: “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 move comes as demand for crypto derivatives continues to grow across global digital asset markets. Futures, perpetual swaps, and options remain widely used by traders seeking leveraged exposure to Bitcoin, Ether, and other tokens. Dubai’s new framework places this activity within a direct and enforceable regulatory perimeter for licensed firms operating in the city.
Several major centralized exchanges already offer crypto derivatives products, including futures, options, and perpetual contracts. Some of the best-known exchanges active in the sector are also part of Dubai’s VARA regime, which gives the new framework immediate relevance for regulated market participants in the emirate.
Crypto derivatives remain the largest segment of digital asset trading by volume. Market data cited alongside the announcement showed total crypto derivatives trading reached about $85.7 trillion in 2025, with daily average turnover near $264.5 billion. Derivatives accounted for more than 75% of total crypto trading volume, led by perpetual swaps and futures.
VARA said the framework is designed to support innovation while maintaining governance and transparency standards. With the rulebook now in effect, licensed firms in Dubai have a clearer set of rules for offering crypto derivatives under regulatory oversight.
Also Read: Crypto Market Update: CFTC Pilot Lets Bitcoin, Ether, and USDC Back Derivatives Trades
