Dubai: Enforces New Compliance Rules for Digital Asset Firms

AInvest, 19 May 2025: Dubai’s Virtual Assets Regulatory Authority (VARA) issued a directive requiring licensed digital asset companies to comply with updated activity-based Rulebooks by 19 June 2025 following the release of Version 2.0 on 19 May 2025.

This update aims to strengthen market integrity and risk oversight by refining controls around margin trading and token distribution services, harmonising compliance requirements, and clarifying definitions for collateral wallet arrangements. It impacts all virtual asset service providers (VASPs) operating within Dubai, obliging them to align with the new rules after a 30-day transition period. VARA has emphasised the importance of this transition period to facilitate adaptation to the updated regulations.

The updated Rulebooks will enhance supervisory mechanisms across various regulated activities, including advisory, broker-dealer, custody, exchange, lending and borrowing, virtual asset management and investment, and VA transfer and settlement services. Key operational terms such as “client assets,” “qualified custodians,” and “collateral requirements” have been defined to ensure consistency and reduce ambiguity in compliance.

In margin trading, VARA tightened leverage thresholds and mandated clearer collateralisation standards to mitigate risks associated with market downturns. The Rulebooks also introduced new token distribution regulations, outlining licensing prerequisites, investor protections, and marketing restrictions, particularly for retail-facing offers.

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Dubai: Smart Building Policy

Gulf News, 9 May 2025: Sheikh Hamdan has approved a smart building policy design to reduce consumption of water and energy.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Chairman of the Executive Council, has approved the new policy measures in alignment with the objectives of the Dubai Social Agenda 33 and the Dubai Economic Agenda D33. The policy is being led by the Dubai Municipality. It outlines standards for smart buildings that use renewable energy, intelligent water networks, smart parking, automated climate control, and real-time monitoring systems.

It aims to reduce power consumption in buildings by 25%, water use by 15%, and operational costs by 20%,

At present, adoption of the policy is purely voluntary in new buildings, but it will be backed up by initiatives to encourage adoption by investors and developers in due course.

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Dubai: Public Prosecution Launches ‘Reconciliation is Better’ Initiative

Gulf News, 30 April 2025: The “Reconciliation is Better” initiative has been launched by Dubai Public Prosecution, as part of a comprehensive plan to enhance dispute resolution through amicable settlements.

This initiative, aligned with international best practices, aims to establish a global benchmark for judicial excellence and support the objectives of the Dubai Plan 2030. It provides a practical alternative to traditional legal proceedings, promoting a culture of tolerance and social harmony, which are central to Dubai’s leadership vision of a cohesive society.

The decision impacts parties involved in legal disputes by offering them a pathway to resolve issues amicably. It allows prosecutors to guide willing parties towards fair and lawful settlements, reducing the reliance on lengthy legal proceedings.

By streamlining the process, the initiative will conserve resources and significantly reduced legal costs, reinforcing Dubai’s commitment to providing exceptional services and quality of life.

The law prohibits concealing infections or spreading them, whether intentionally or unintentionally, and requires individuals to comply with measures to prevent the spread of disease, following guidelines issued by relevant authorities and healthcare providers.

It has established a comprehensive framework to promote public health and safeguard community and environmental well-being. It outlines a focus on disease prevention, healthcare, food and product safety and sustainable efforts to improve overall quality of life.

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Dubai: New Public Health Law Impacts Travellers

Gulf News, 25 April 2025: Travellers entering Dubai are to be required to follow specific health protocols as a result of a new health law.

Dubai Law No. 5/2025 on Public Health outlines a wide-ranging framework to improve community health, reduce disease transmission, and align public health practices with international standards.

It introduces strict obligations for travellers, individuals, and healthcare providers, while also clarifying the roles of government entities in safeguarding health and the environment.

Travellers must adhere to official health protocols, provide requested information at Dubai’s entry points and report any suspected or confirmed communicable diseases.

Anyone who is infected or suspected of having a communicable disease must avoid contact that could spread their illness. The law states individuals must refrain from travelling or moving, except to healthcare facilities, without the approval of the Dubai Health Authority.

Those who are travelling while ill, must observe hygiene measures such as wearing masks and maintaining physical distancing in line with approved guidelines.

The law prohibits concealing infections or spreading them, whether intentionally or unintentionally, and requires individuals to comply with measures to prevent the spread of disease, following guidelines issued by relevant authorities and healthcare providers.

It has established a comprehensive framework to promote public health and safeguard community and environmental well-being. It outlines a focus on disease prevention, healthcare, food and product safety and sustainable efforts to improve overall quality of life.

It aims to minimise any health risks affecting individuals and communities in Dubai through precautionary measures and evidence-based practices that align with both local and international health regulations.

It also promotes greater coordination and collaboration at all levels to strengthen preparedness and response to any public health challenges in the emirate. and aims to increase public awareness of health risks and prevention methods by fostering a sustainable environment that attracts investment.

In addition, it has also formally defined the roles and responsibilities of relevant authorities in managing communicable diseases.

These authorities include local government entities tasked with overseeing public health in Dubai, such as Dubai Health Authority, Dubai Municipality, the Dubai Environment and Climate Change Authority, the Dubai Academic Health Corporation and the Dubai Corporation for Ambulance Services.

The law has outlined the responsibilities of the relevant authorities in food safety, specified obligations for food-related establishments and set out some rules for consumer product activities.

It has also detailed responsibilities in areas such as built environmental health, labour accommodations, pest control and the Dubai Health Authority’s role in managing health risks, emergencies and crises.

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Dubai: Launches World’s First AI-Powered Financial Governance System

Emarat Al Youm, 22 April 2025: Dubai’s Department of Finance has unveiled “ASCEND,” an AI-powered system designed to enhance financial governance and compliance.

The system was launched during the inaugural Dubai AI Week, reflecting the department’s commitment to modernising government financial operations and ensuring future readiness through advanced technology and innovation.

“ASCEND” is a cornerstone of Dubai’s AI strategy, driving comprehensive transformation in financial operations to ensure accountability, flexibility, and excellence. It addresses government compliance challenges such as data fragmentation and manual processes and it seamlessly integrates with other internal systems, enabling unified compliance oversight without data transfer. The system automates traditional review processes, setting a high global standard for public sector financial oversight.

It employs a multi-step intelligent approach supported by open-source large language models and retrieval-augmented generation architecture and analyses complex legal texts, understands financial processes, and assesses compliance with relevant laws and regulations. The system generates actionable AI-driven recommendations to support governance practices and automatically issues clear compliance reports in Arabic and English.

“ASCEND” has been designed to be secure and scalable, operating on a cloud infrastructure within the UAE to ensure full data sovereignty and compliance with national information security standards.

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