Dubai releases regulatory framework for derivatives trading on cryptocurrency exchanges

According to Cointelegraph, the Dubai Virtual Assets Regulatory Authority has released a formal regulatory framework for cryptocurrency exchange-traded derivatives, allowing retail customers to participate in trading after a suitability assessment.

The new regulations cover requirements such as customer suitability, leverage and margin controls, asset segregation, disclosure standards, and regulatory intervention powers. The leverage limit for retail investors is set at 5 times, and exchanges must restrict access when products are deemed unsuitable for specific customer groups. VARA stated that during periods of market stress or trading disruptions, regulators have the authority to take intervention measures, including suspending products, requiring liquidation, increasing margin requirements, and in emergencies, demanding immediate action without prior notice.