Dubai: The Virtual Assets Regulatory Authority (VARA) has today released its Guidance on the Virtual Assets Issuance Rulebook, marking Dubai as the first jurisdiction globally to formalize the creation, disclosure, and distribution of digital assets within a fully licensed framework. This milestone represents the world's first dedicated regulatory guidance on virtual asset issuance.
According to Emirates News Agency, the Guidance is designed to complement VARA's Virtual Assets Issuance Rulebook, providing market participants with a practical reference to understand how the issuance regime applies across various categories of virtual assets and different types of issuers. This initiative aims to streamline the process for issuers, Virtual Asset Service Providers (VASPs), and market participants by offering a single authoritative reference for navigating Dubai's issuance regulations.
The Guidance delineates three distinct issuance pathways: Category 1 Virtual Asset Issuances, which necessitate licensing and apply to fiat-referenced and asset-referenced virtual assets; Category 2 Issuances, which are facilitated through Licensed Distributors; and Exempt Virtual Assets, which face limited requirements due to their restricted functionality.
Matthew White, Chief Executive Officer of VARA, emphasized the importance of clear issuance standards in 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," he stated.
The Guidance further reinforces VARA's commitment to disclosure-led regulation, mandating issuers to provide comprehensive Whitepapers and Risk Disclosure Statements that are clear, accurate, and accessible to prospective users. These requirements aim to enable informed decision-making and promote greater transparency within the virtual asset ecosystem.
Additionally, the Guidance clarifies the responsibilities of issuers and Licensed Distributors, especially concerning Category 2 issuances, where distributors must conduct due diligence and ongoing validation of compliance with the Rulebook. Ruben Bombardi, General Counsel of VARA, remarked, "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."
The Guidance also outlines expectations related 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 stressed that compliance with issuance requirements does not equate to regulatory endorsement of any virtual asset, issuer, or distribution activity. Market participants are responsible for adhering to all applicable regulations and assessing the risks associated with virtual assets.
This publication is a part of VARA's ongoing engagement with industry stakeholders to support a transparent and well-regulated virtual asset ecosystem in Dubai.
