Dubai’s Virtual Assets Regulatory Authority (VARA) has released detailed guidance clarifying how token issuers should structure, disclose and distribute virtual assets within the emirate. The document sharpens existing rules for stablecoins and real-world asset tokens, and interprets VARA’s current Virtual Asset Issuance Rulebook rather than introducing new legislation. The guidance arrives just over a week after VARA expanded its exchange rulebook to include exchange-traded crypto derivatives.
Rather than applying a uniform standard to all tokens, the framework establishes three distinct issuance pathways based on risk profile and functionality. Category 1 covers fiat-referenced virtual assets and asset-referenced virtual assets, while Category 2 requires distribution through a VARA-licensed intermediary. A third pathway applies to exempt virtual assets that carry limited functionality.
The framework positions Dubai’s approach as purpose-built for virtual assets, contrasting it with jurisdictions that apply general securities or payments law to token launches. VARA argues that many virtual assets do not map neatly onto existing legal categories, making a dedicated regime more appropriate. The guidance also clarifies that licensed distributors in Category 2 issuances bear responsibility for due diligence and ongoing compliance validation.
Ruben Bombardi, general counsel at VARA, told Cointelegraph that the bespoke issuance regime offers concrete benefits to issuers, including greater regulatory clarity. For investors and users, the framework aims to support informed decision-making by improving transparency around an asset’s characteristics and associated risks. Bombardi described the approach as providing a single, dedicated reference point for how virtual assets may be issued, disclosed and distributed within Dubai’s licensed regime.
Bombardi also highlighted several features that VARA considers distinctive compared to other international regulatory frameworks. These include specific treatment for asset-referenced virtual assets, with defined expectations around reserve assets, redemption rights and legal structuring. The regime also takes a strongly disclosure-led approach, requiring whitepapers and separate risk disclosure statements that must be clear, accurate and accessible to users.
VARA’s general counsel added that the authority expects the framework to attract interest from foreign regulators and standard-setting bodies, though the immediate priority remains providing practical clarity for market participants operating in Dubai. The guidance forms part of the emirate’s broader effort to build a tailored crypto regulatory framework rather than adapting token launches to generic financial law. VARA has not indicated a timeline for any further updates to the issuance rulebook.
Originally reported by CoinTelegraph.
