Dubai releases regulatory framework for derivatives trading on cryptocurrency exchanges

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

The new rules cover requirements such as customer suitability, leverage and margin controls, asset segregation, disclosure standards, and the regulator’s intervention powers. For retail investors, the leverage cap is 5x. Exchanges must ensure that they restrict access when products are not suitable for certain customer groups. VARA states that during periods of market stress or trading disorder, regulators have the authority to take intervention measures, including pausing products, requiring position closures, and increasing margin requirements, and in emergencies they may require immediate action without prior notice.

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