Dubai VARA Issues Audit Requirements for VASP Reserve Assets

The Dubai Virtual Assets Regulatory Authority (VARA) issued a circular on October 6 regarding the audit of reserve assets, outlining the minimum requirements for independent audits of Virtual Asset Service Providers (VASP). VASPs must maintain reserves of no less than 100% of customer liabilities during the review period and hold the same virtual assets on a 1:1 basis, conducting daily reconciliations. The audit scope must cover hot wallets, warm wallets, cold wallets, third-party wallet infrastructure, and third-party custodial assets, and verify customer asset segregation, wallet control, and whether there is any re-staking, lending, or other usage scenarios.

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