Dubai’s Virtual Assets Regulatory Authority (VARA) has introduced a new regulatory framework for crypto exchange-traded derivatives (ETDs), laying out how licensed crypto companies can offer the products in the emirate.

In a Tuesday announcement shared with Cointelegraph, the framework, set out in Version 2.1 of VARA’s Exchange Services Rulebook, outlines requirements covering client suitability, leverage and margin controls, asset segregation, disclosure standards and regulatory intervention powers.

VARA said the framework applies to licensed virtual asset service providers (VASPs) offering exchange services in Dubai. 

The update puts more formal guardrails around a higher-risk corner of Dubai’s crypto market as the emirate builds…