Dubai Launches The World’s First Dedicated Regulatory Guidance On Virtual Asset Issuance
The move has been said to reinforce "Dubai’s position as a jurisdiction that enables responsible innovation while safeguarding market integrity.”
Dubai has become the first jurisdiction globally to introduce dedicated regulatory guidance governing the issuance of virtual assets.
The emirate’s Virtual Assets Regulatory Authority (VARA) has come out with its Guidance on the Virtual Assets Issuance Rulebook, which codifies how digital assets must be created, disclosed, and distributed within Dubai’s fully licensed environment.
The Guidance, which complements VARA’s Virtual Assets Issuance Rulebook, offers market participants a practical reference for understanding how its issuance regime applies across different categories of virtual assets and different types of issuers.
In a statement, Matthew White, CEO, VARA, said, “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, added, “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.”
As a first of its kind framework, the Guidance provides issuers, virtual asset service providers (VASPs), and other market participants with a single authoritative reference for navigating Dubai’s issuance regime.
The Guidance draws 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; and Exempt Virtual Assets, which are subject to limited requirements due to their restricted functionality.
The Guidance 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. It 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.
VARA’s Guidance on Virtual Asset Issuance is available on its official website.
