Dubai’s Virtual Assets Regulatory Authority (VARA) published guidance clarifying how token issuers should structure, disclose and distribute virtual assets in the emirate, sharpening rules for stablecoins and real‑world asset (RWA) tokens.
The guidance interprets VARA’s existing Virtual Asset Issuance Rulebook rather than creating new law and sets out three distinct issuance pathways, specifying responsibilities for issuers, distributors and other parties under each route. Instead of treating all tokens the same, the framework separates Category 1 issuances (including fiat‑referenced and asset‑referenced virtual assets), Category 2 issuances that must be distributed via a VARA‑licensed intermediary, and exempt virtual assets with limited functionality.
VARA frames the regime as a purpose‑built issuance framework tailored to virtual assets, contrasting it with approaches that apply general securities or payments laws to token launches — including stablecoins and RWA‑style structures. The guidance clarifies the role of licensed distributors in Category 2 offerings, making them responsible for due diligence and ongoing validation of compliance.
The move is part of Dubai’s broader effort to develop a bespoke crypto rulebook rather than shoehorning token launches into generic legal categories. It follows VARA’s recent expansion of its exchange rulebook to cover exchange‑traded crypto derivatives.
Ruben Bombardi, VARA’s general counsel, said a bespoke issuance regime gives issuers greater regulatory clarity because many virtual assets do not map neatly onto existing categories, and it helps investors make informed decisions by improving transparency around an asset’s characteristics and risks. He described the framework as a “more tailored approach to issuance” and “a single, dedicated reference point” for how virtual assets may be issued, disclosed and distributed in Dubai’s licensed regime.
VARA also highlighted features intended to differentiate Dubai internationally, including specific treatment for asset‑referenced virtual assets with expectations around reserve assets, redemption rights and legal structuring, and a strong disclosure‑led approach anchored in clear, accurate and accessible whitepapers and separate risk disclosure statements. VARA expects the framework to interest foreign regulators and standard setters while immediately providing practical clarity to market participants in Dubai.