Maintain 100% customer liability reserve coverage throughout, Dubai Vara clarifies Vasp reserve asset audit requirements

The Reserve Assets Audit Circular issued by the Dubai Virtual Asset Authority (Vara) on October 6 clarifies the minimum requirements for VASP independent audits. VASP shall maintain a reserve of not less than 100% of the Client's liabilities throughout the period under review and shall be held at a ratio of 1: 1 on the same virtual asset and reconciled on a daily basis. The scope of the audit shall cover hot wallets, warm wallets, cold wallets, third-party wallet infrastructure and third-party custody assets, and check the customer's asset isolation, wallet control, and whether there is re-staking, borrowing or other use cases.