Dubai’s Virtual Assets Regulatory Authority (VARA) published Part V of the Exchange Services Rulebook on 2026-03-31, formally codifying the regulatory framework for Exchange Traded Derivative (ETD) Services. The new framework explicitly covers crypto futures, perpetuals, options, and CFDs - all instruments that prop firms running under a DMCC + VARA dual licence may now offer to clients inside Dubai.
The headline operational constraint: a leverage cap for Retail Investors at 5:1 via a minimum initial margin of 20% of notional. That is materially tighter than the leverage prop firms have historically used to market their funded accounts, and operators relying on high-leverage challenge mechanics need to model the impact on retail-side flow.
The framework also clarifies the line between VARA’s licensed exchange activities and proprietary trading. Licensed Virtual Asset Service Providers (VASPs) remain prohibited from proprietary trading or trading their Group’s portfolio under the same regulated activity licence - prop trading must run from a separate company. The 30-day rolling USD 250M volume threshold for VARA registration applies regardless of whether a full VASP licence is in scope.
What it means for operators in the Brokerage Atlas universe: prop firms running DMCC + VARA stacks need a fresh compliance review against Part V before the next challenge cycle. The 5:1 retail cap reshapes the funded-account economics; the proprietary-trading carve-out shape changes nothing for existing prop firm structures but raises the bar for hybrid VASP + prop setups. Watch for follow-on guidance from VARA over the next quarter on settlement, position-monitoring, and reporting cadence under Part V.