HashKey launches 2 crypto perpetuals in Dubai after VARA approval

HashKey Middle East launched Bitcoin and Ethereum perpetual derivatives after securing regulatory approval from Dubai's Virtual Assets Regulatory Authority, bringing regulated crypto perpetuals to traders in the United Arab Emirates.

"VARA's regulatory framework provides the clarity needed to offer institutional-grade derivatives products in a compliant manner," a HashKey Middle East spokesperson said in a statement. The approval covers perpetual contracts for both Bitcoin and Ether, the two largest digital assets by market capitalization.

The launch places HashKey among a growing number of firms bringing regulated crypto derivatives to the Middle East. Kraken this month introduced USD-settled Bitcoin and Ether options through its Kraken Pro platform, targeting institutional clients outside Europe and North America. Bitget also launched quanto perpetual futures tied to Hong Kong-listed stocks, settling in USDT. Perpetual futures account for the majority of crypto derivatives trading volume globally, according to CoinGecko data, but most trading still flows through unregulated offshore exchanges such as Binance and Bybit.

Dubai's regulatory push under VARA, established in 2022, has attracted crypto firms seeking clearer rules than those in the US or Europe. The UAE's approach could draw more institutional traders looking for compliant venues to trade perpetuals, a product traditionally dominated by offshore platforms with limited oversight. HashKey plans to expand the offering to additional clients as regulatory permissions allow.

HashKey, a unit of Hong Kong-based HashKey Group, has been expanding its Middle East presence as the region emerges as a hub for digital asset regulation. The VARA license allows the firm to offer perpetual contracts directly to UAE-based traders, a market that has largely relied on international exchanges for derivatives access. The product structure — perpetual futures with no expiry date — mirrors the contracts that drive most crypto trading volume globally, but with the added layer of regulatory oversight.

The launch comes as regulators worldwide take divergent approaches to crypto derivatives. The US Securities and Exchange Commission has pursued enforcement actions against exchanges offering unregistered securities, while the European Union's Markets in Crypto-Assets regulation, or MiCA, provides a framework for crypto asset service providers but does not specifically address perpetual contracts. Dubai's VARA has positioned itself as a first-mover by issuing specific guidance for derivatives products, giving licensed firms a competitive edge in attracting institutional flow.

For traders in the UAE, the HashKey launch means access to regulated perpetuals without routing orders through offshore platforms. That could reduce counterparty risk and improve settlement transparency, two factors that have kept some institutional investors from participating in the crypto derivatives market.

This article is for informational purposes only and does not constitute investment advice.