Dubai’s Virtual Assets Regulatory Authority updated requirements for issuers, dividing tokens into three categories and introducing stricter disclosure and governance standards for digital assets, particularly stablecoins and tokenized real-world assets (RWA).
Dubai’s Virtual Assets Regulatory Authority (VARA) revised the rules for issuing crypto-assets, expanding requirements for issuers, disclosures, and investor protection. In particular, the regulator clarified the issuance framework for digital assets by dividing them into three categories and establishing mandatory requirements for licensing, white papers, and risk disclosures.
According to the new guidance, all companies and individuals issuing virtual assets in Dubai for use in business processes must comply with a unified rulebook. The regulator also introduced a clear classification of virtual assets:
- Category 1. Assets subject to the highest level of regulation. These include tokens pegged to fiat currencies and RWAs. Issuance is only permitted with a VARA license, and issuers are required to maintain reserve assets to support the token’s value.
- Exempt VAs. Assets with simplified regulatory requirements. These include, for example, non-transferable NFTs or assets with limited use within a closed ecosystem. Despite the lighter regime, issuers must still adhere to basic principles of transparency and good faith.
- Category 2. All other virtual assets that don’t fall under Category 1 or the simplified regime. A license isn’t required for issuance; however, offering and distribution must be conducted through a licensed intermediary that performs project due diligence.
The regulator also tightened disclosure requirements. Most projects are now required to publish a white paper with a full description of the asset prior to issuance, along with a separate risk disclosure document outlining all significant risks for investors. These documents must be publicly available, written in clear language, and regularly updated if the asset’s characteristics change. Issuers are prohibited from limiting their liability for the information contained in these documents.
Besides, for tokens backed by RWAs, stricter requirements were introduced, including regular, at least monthly disclosure of the number of tokens in circulation and the volume of reserves, as well as mandatory verification of sufficient backing.
VARA emphasizes that the new framework is aimed at increasing market transparency and protecting investors, given the rapid development of the crypto industry and the diversity of digital asset models. The regulator previously began work on creating the world’s first legal framework for DePIN projects and other areas of the machine economy.
