Dubai’s Virtual Assets Regulatory Authority, or VARA, has issued a circular setting minimum requirements for independent reserve asset audits of virtual asset service providers (VASPs). The notice says VASPs must maintain reserves equal to at least 100% of client liabilities throughout the full review period. Those reserves must be held on a 1:1 basis in the same virtual assets as customer liabilities, with daily reconciliation required.
The audit scope must cover hot wallets, warm wallets, cold wallets, third-party wallet infrastructure, and assets held with third-party custodians. Auditors are also required to examine whether client assets are properly segregated, who controls the wallets, and whether any assets have been used for restaking, lending, or other purposes. The update was cited by Wu Blockchain.
Dubai’s Virtual Assets Regulatory Authority (VARA) has put out a reserve asset audit circular laying down the minimum rules for independent audits of virtual asset service providers (VASPs).
Under that circular, VASPs have to keep reserves at no less than 100% of client liabilities for the full review period. No shortcuts. Those reserves have to be held 1:1 in the same virtual assets, and firms also need to perform daily reconciliation.
The audit scope spans hot wallets, warm wallets, cold wallets, third-party wallet infrastructure, and assets kept with third-party custodians. It also has to check client asset segregation, wallet control, and whether assets have been used for restaking, lending, or other purposes.
Wu Blockchain cited the update.
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