Dubai’s Virtual Assets Regulatory Authority has published a detailed guidance document detailing how token issuers should operate.
Summary
- VARA has published detailed guidance clarifying how virtual assets should be structured, disclosed, and distributed in Dubai.
- The framework defines three issuance categories and assigns clear responsibilities to issuers and licensed intermediaries.
- Stablecoins and asset-referenced tokens now face specific requirements on reserves, disclosures, and investor protections.
Rather than introducing new legislation, the document interprets VARA’s existing Virtual Asset Issuance Rulebook, offering clearer direction on how different types of tokens should be handled in practice.
The update comes as the regulator continues to refine its bespoke framework for digital assets, distancing itself from jurisdictions that rely on traditional securities or payments laws to govern token launches.
Classifications based on risks
At the core of the guidance is a three-part classification system that separates token issuances based on their structure and risk profile.
Category 1 covers fiat-referenced and asset-referenced virtual assets, including stablecoins and RWA-style tokens, while Category 2 applies to issuances that must be distributed through VARA-licensed intermediaries. A third group carves out exempt virtual assets with limited functionality, reducing compliance burdens for simpler use cases.
Each pathway comes with clearly defined responsibilities. In Category 2 issuances, licensed distributors are tasked with conducting due diligence and ensuring ongoing compliance, placing accountability not just on issuers but also on entities involved in distribution. The framework moves away from treating all tokens as uniform products, instead aligning oversight with how each asset functions in the market.
The framework includes specific provisions for stablecoins and asset-referenced tokens, setting expectations around reserve assets, redemption rights, and legal structuring.
Speaking to crypto media, Ruben Bombardi, general counsel at Virtual Assets Regulatory Authority, said the regime offers “greater regulatory clarity,” as many virtual assets do not map neatly onto existing categories.
Bombardi said the framework is designed to support “informed decision-making” by improving how risks and asset characteristics are disclosed to users.
The update builds on a series of recent moves by the regulator to expand its rulebook in line with market activity. Earlier this month, VARA expanded its framework for exchanges to cover crypto derivatives.
