[DigitalToday reporter Chi-gyu Hwang (황치규)] Dubai has formalised rules for exchange-traded virtual asset derivatives (ETDs) and allowed retail investor participation, subject to conditions including suitability reviews and leverage and margin limits, Cointelegraph reported on Monday.
Dubai's Virtual Assets Regulatory Authority (VARA) introduced the regulatory framework.
The framework is included in version 2.1 of VARA's Exchange Services Rulebook. It sets out requirements licensed virtual asset firms must meet when offering ETDs in Dubai, including customer suitability assessments, leverage and margin controls, asset segregation, disclosure standards and regulator intervention powers. It applies to licensed virtual asset service providers (VASPs) that provide exchange services in Dubai.
VARA said both institutional and retail investors can participate, but retail access is subject to risk-based controls. A VARA spokesperson said retail investors must meet strict suitability assessments, including experience, financial status and risk tolerance, as well as enhanced information requirements. It required firms to restrict trading access if a product is not suitable for a customer group.
Chi-gyu Hwang
delight@d-today.co.kr