VARA issues Rulebook v2.1 to regulate crypto derivatives in Dubai, requiring licenses and investor protections

The Dubai Virtual Assets Regulatory Authority (VARA) has published a new regulatory framework—Rulebook Version 2.1—governing exchange‑traded crypto derivatives, effective immediately for Virtual Asset Service Providers (VASPs) registered and licensed in Dubai ^{[1] [2]}.

Under the framework, firms must obtain explicit authorization and meet compliance obligations to offer derivatives products, creating a clearly defined regulatory perimeter for crypto derivatives trading in the emirate ^{[2] [1]}.

The rules introduce investor safeguards such as leverage limits and measures to improve market transparency, aiming to balance innovation and market growth with strengthened investor protection while enabling licensed firms to offer complex crypto‑based products ^{[3] [4]}.

VARA’s Rulebook 2.1 places Dubai among the earliest jurisdictions to adopt an enforceable, purpose‑built regulatory regime for crypto derivatives, signaling a step toward a regulated derivatives market in the emirate ^{[4] [2]}.