Dubai’s Virtual Assets Regulatory Authority (VARA) issued on Thursday its Guidance on the Virtual Assets Issuance Rulebook. The publication makes Dubai the first jurisdiction globally to codify how digital assets must be created, disclosed and distributed within a fully licensed environment, the world’s first dedicated regulatory Guidance on Virtual Asset Issuance.
The Guidance complements VARA’s Virtual Assets Issuance Rulebook, offering market participants a practical reference for understanding how the issuance regime applies across different categories of virtual assets and different types of issuers.
Dubai draws clear lines between three distinct issuance pathways
The Guidance provides issuers, VASPs and market participants with a single authoritative reference for navigating Dubai’s issuance regime, drawing clear lines between three distinct issuance pathways:
- Category 1: Virtual Asset Issuances, which require licensing and apply to fiat-referenced and asset-referenced Virtual Assets.
- Category 2: Issuances, which are facilitated through Licensed Distributors.
- Category 3: Exempt Virtual Assets, which are subject to limited requirements due to their restricted functionality.
“Clear issuance standards are fundamental to building resilient and transparent Virtual Asset markets. This Guidance provides practical clarity on how VARA’s framework applies across different issuance models, ensuring that innovation is supported by strong governance, robust disclosures and accountable market practices,” said Matthew White, Chief Executive Officer, VARA.
Dubai enables responsible innovation while safeguarding market integrity
The Guidance reinforces VARA’s commitment to disclosure-led regulation, requiring issuers to provide comprehensive Whitepapers and Risk Disclosure Statements that are clear, accurate and accessible to prospective users. These requirements are intended to enable informed decision-making and promote greater transparency across the ecosystem.
It also clarifies the respective responsibilities of issuers and Licensed Distributors, particularly in the context of Category 2 issuances, where distributors are required to conduct due diligence and ongoing validation of compliance with the Rulebook.
“Trust is built through clarity, and clarity begins with disclosure. By strengthening the standards around how virtual assets are issued and communicated to the market, this Guidance reinforces Dubai’s position as a jurisdiction that enables responsible innovation while safeguarding market integrity,” said Ruben Bombardi, General Counsel, VARA.
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VARA outlines requirements around Reserve Assets, redemption rights and legal structuring
The Guidance further outlines expectations relating to governance, ongoing disclosure obligations and the treatment of Asset-Referenced Virtual Assets, including requirements around Reserve Assets, redemption rights and legal structuring.
Importantly, VARA has emphasized that compliance with issuance requirements does not constitute regulatory endorsement of any virtual asset, issuer, or distribution activity. Market participants remain responsible for ensuring adherence to all applicable regulations and for assessing the risks associated with virtual assets.
The publication forms part of VARA’s ongoing engagement with industry stakeholders to support a transparent and well-regulated virtual asset ecosystem in Dubai.
