Dubai’s VARA regulator introduces new regulations for issuing digital assets

crypthub

about 24 hours ago

VARA Issuance Rulebook

The Virtual Assets Regulatory Authority (VARA) released the world’s first dedicated guidance on virtual‑asset issuance. All entities issuing assets in Dubai must follow the rulebook, which VARA may amend. The guidance clarifies how the regime applies to different asset types and issuers.

Asset Classifications and Restrictions

Approved assets include fiat‑referenced virtual assets (FRVAs) backed by non‑sanctioned central‑bank currencies, and tokenised real‑world assets (ARVAs, RWAs). VARA does not recognise AED stablecoins, CBDCs, or sanctioned‑country currencies, and anonymity‑enhanced cryptocurrencies are banned. Certain assets, such as non‑transferable or closed‑loop tokens, are exempt from licensing.

Licensing and Distribution

Issuers must obtain a VARA licence and prior white‑paper approval, while Category 2 assets can be distributed through licensed distributors without a separate licence. Distributors are required to conduct due diligence and ensure ongoing compliance. Additional nuanced requirements may apply based on asset nature and business model.

Disclosure and Governance

The guidance mandates comprehensive whitepapers and clear risk disclosures for all issuers. Ongoing governance and transparency obligations aim to protect users and support innovation. VARA emphasises that robust disclosure builds trust and positions Dubai as a responsible crypto hub.