Dubai’s Virtual Assets Regulatory Authority (VARA) has provided guidance on its Virtual Assets Issuance Rulebook, making it the first jurisdiction to codify the ways in which digital assets must be created, disclosed, and distributed in a fully licensed environment.
The launch gives issuers, virtual asset service providers (VASPs), and market participants a singular point of reference for the region’s issuance regime.
The guidance draws distinct lines between three issuance pathways:
The first being Category 1 Virtual Asset Issuance, which necessitates the issuer to be licensed by VARA, hold and maintain reserve assets, and applies to fiat-referenced and asset-referenced digital assets.
The second is Category 2 issuance, which does not require the issuer to hold a VARA licence and is instead facilitated through licensed distributors for the placement and distribution of the digital asset.
The final pathway is Exempt Virtual Assets, which are instead subject to limited requirements as a result of their reduced functionality.
VARA says the guidance is indicative of its “commitment to disclosure-led regulation”, which requires issuers to provide detailed, accessible, accurate, and clear whitepapers and disclosure statements, intended to enable informed decision-making and greater transparency.
Commenting on the initiative, Matthew White, CEO, VARA, says: “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.”
Ruben Bombardi, general counsel, VARA, adds: “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.”
The full guidance outlines expectations regarding governance, disclosure obligations, and the treatment of asset-referenced virtual assets, including requisites surrounding reserve assets, redemption rights, and legal structuring.
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