Dubai's Virtual Assets Regulatory Authority (VARA) has published detailed guidance that clarifies how token issuers must structure, disclose, and distribute virtual assets within the emirate. The document, released on Thursday, sharpens the regulatory framework specifically for stablecoins and real-world asset (RWA) tokens.
The guidance interprets VARA's existing Virtual Asset Issuance Rulebook rather than creating new law. It establishes three distinct issuance pathways: Category 1 (including fiat-referenced virtual assets/stablecoins and asset-referenced virtual assets/RWAs), Category 2 (which must be distributed via a VARA-licensed intermediary), and exempt virtual assets with limited functionality.
VARA positions this as a purpose-built framework calibrated for virtual assets, contrasting it with jurisdictions that apply generic securities or payments law to token launches. The guidance clarifies the role of licensed distributors in Category 2 issuances, making them responsible for due diligence and ongoing validation of compliance.
Key specifics include: Fiat-Referenced Virtual Assets (FRVAs) can only be used for purchasing/selling assets within the VA ecosystem and may not be used as a means of payment for goods or services within the UAE. VARA does not recognize AED stablecoins without Central Bank of the UAE approval, nor does it recognize CBDCs or tokenized bank deposits for interbank settlements. The issuance of Anonymity-Enhanced Cryptocurrencies remains prohibited.
Ruben Bombardi, General Counsel at VARA, told Cointelegraph that this bespoke regime offers issuers "greater regulatory clarity" as many virtual assets don't map neatly onto existing legal categories. For investors, it aims to support "informed decision-making" through improved transparency. Matthew White, CEO of VARA, stated, "Clear issuance standards are fundamental to building resilient and transparent Virtual Asset markets."
This move adds to Dubai's push to build a specialized crypto rulebook and follows VARA's recent expansion of its exchange rulebook to cover crypto derivatives just over a week prior.
