Dubai Finalizes Crypto Derivatives Rulebook With 5x Retail Cap

Overview

• VARA, which published Version 2.1 on Tuesday, set a binding framework for crypto exchange‑traded derivatives offered by licensed exchanges in Dubai.
• Firms must screen retail users for experience, financial capacity, and risk tolerance before granting access.
• Retail leverage is capped at 5:1 with a minimum 20% initial margin, and providers must segregate client assets and give plain‑spoken risk and margin disclosures.
• Exchanges must run stronger governance and real‑time risk monitoring, while VARA can suspend products, order liquidations, or raise margins during market stress.
• The rules codify earlier UAE pilots and mark a middle path between offshore 100x platforms and stricter markets like the UK, which banned retail crypto derivatives.