Dubai’s Virtual Assets Regulatory Authority (VARA) has issued comprehensive guidance on its Virtual Assets Issuance Rulebook, creating what it calls the first codified framework for how digital assets are created, disclosed, and distributed within a fully licensed regulatory environment. The move solidifies the emirate’s push to become a primary global hub for the digital asset industry.
Quick Facts
- First jurisdiction to formally codify issuance rules.
- Introduces three distinct pathways for virtual asset issuance.
- Mandates comprehensive white papers and risk disclosures for issuers.
A Three-Tiered Approach to Issuance
The new guidance builds on VARA’s existing rules by providing a clear, structured framework for market participants. It outlines three distinct pathways for bringing a virtual asset to market in Dubai.
Category 1 issuances apply to fiat- and asset-referenced tokens, which require full licensing. Category 2 issuances are managed through licensed distributors who are responsible for due diligence. Finally, Exempt Virtual Assets, those with limited functionality, are subject to lighter requirements. This tiered system aims to provide regulatory clarity for issuers, virtual asset service providers (VASPs), and other stakeholders operating in Dubai.
Disclosure and Accountability at the Core
A central pillar of the new framework is its focus on transparency. Issuers are now required to publish detailed white papers and risk disclosure statements that are accurate and accessible, helping investors make informed decisions.
The guidance also places significant responsibility on licensed distributors, especially under the Category 2 model, mandating stringent due diligence and ongoing compliance checks.
Ruben Bombardi, General Counsel and Head of Regulatory Enablement at VARA, noted that strengthening disclosure standards is essential for building market trust. He added that the framework reinforces Dubai’s position as a center for responsible innovation while protecting market integrity.
Fostering a Regulated Innovation Hub
The framework extends beyond the initial issuance, setting clear expectations for governance, ongoing disclosure obligations, and the specific handling of asset-referenced virtual assets. This includes rules tied to reserve backing, redemption rights, and legal structuring.
Matthew White, CEO of VARA, stated that clear issuance standards are fundamental to developing resilient and transparent markets. He explained that the guidance offers practical clarity across different models, ensuring that innovation is supported by strong governance and accountable practices.
VARA also emphasized that compliance with these new requirements does not constitute a regulatory endorsement of any specific asset or issuer. All market participants remain fully accountable for adhering to regulations and evaluating the risks involved.
About The Virtual Assets Regulatory Authority (VARA)
Established in March 2022, the Virtual Assets Regulatory Authority (VARA) is the world’s first independent regulator for virtual assets. It is responsible for licensing and regulating the virtual asset sector throughout the Emirate of Dubai (excluding the Dubai International Financial Centre) and serves as the central authority for the industry.
Source: Fast Company Middle East
