Dubai regulator requires crypto firms to hold reserves exceeding 100% of client assets

Dubai’s Virtual Assets Regulatory Authority (VARA) announced minimum requirements for independent audits of reserve assets held by virtual asset service providers (VASPs). VARA said VASPs must maintain reserves exceeding 100% of client liabilities during the audit period, hold the same virtual assets as clients on a one-to-one basis, and reconcile them daily. It added that audits must cover hot, warm, and cold wallets as well as third-party custodial assets, while also checking whether client assets are segregated and whether they are being used for activities such as restaking or lending.