Virtual Asset Regulatory Authority (VARA) is a dedicated regulatory body established in certain jurisdictions, such as Dubai, specifically to oversee and license activities related to virtual assets. This authority is responsible for developing and enforcing comprehensive regulations for digital asset service providers, including exchanges, custodians, brokers, and issuers. Its purpose is to create a secure, transparent, and compliant environment for the virtual asset industry, protecting market participants and fostering responsible innovation.
Mechanism
VARA functions by issuing licenses to qualified entities that meet its stringent requirements for capital adequacy, cybersecurity, governance, and anti-money laundering (AML) compliance. It implements a regulatory framework that covers various aspects of virtual asset operations, from issuance and trading to custody and advisory services. The mechanism involves continuous supervision, periodic audits, and the power to impose penalties or revoke licenses for non-compliance, ensuring adherence to established standards. Methodology
This regulatory approval in Dubai establishes a critical framework for institutional engagement in digital asset derivatives, enhancing market structure and capital efficiency.
This regulatory approval establishes a new conduit for institutional capital to engage digital asset derivatives with enhanced structural integrity and controlled exposure.
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