Dubai Becomes First Jurisdiction to Codify Virtual Asset Issuance Under VARA Guidance

Virtual Assets Regulatory Authority (VARA) has released its long-anticipated Guidance on the Virtual Assets Issuance Rulebook, marking a global first for the emirate. The move positions Dubai as the first jurisdiction to formally codify how digital assets must be created, disclosed, and distributed within a fully licensed regulatory framework.

The newly issued Guidance builds on VARA’s existing Issuance Rulebook, offering a detailed and practical roadmap for issuers and Virtual Asset Service Providers (VASPs) navigating the emirate’s evolving digital asset ecosystem.

Three Defined Issuance Pathways

At the core of the framework is a clear classification system that outlines three distinct issuance pathways:

• Category 1 Virtual Asset Issuances apply to fiat-referenced and asset-referenced digital assets, requiring direct licensing from VARA.
• Category 2 Issuances must be conducted through Licensed Distributors, who are responsible for due diligence and continuous compliance monitoring.
• Exempt Virtual Assets—due to their limited functionality—are subject to lighter regulatory requirements.

This structured approach provides clarity for market participants while ensuring proportional oversight based on the nature and complexity of each asset type.

Disclosure-Led Regulation at the Forefront

A defining feature of the Guidance is VARA’s emphasis on transparency and investor protection through disclosure.

Ruben Bombardi highlighted the importance of clear communication in building market trust.

“Trust is built through clarity, and clarity begins with disclosure,” Bombardi said, noting that strengthened disclosure standards are essential for responsible innovation.

Under the new rules, issuers must provide detailed Whitepapers and Risk Disclosure Statements. These documents are required to be accurate, accessible, and comprehensive, enabling investors to make informed decisions in an increasingly complex market.

Governance Standards and Market Integrity

Beyond initial disclosures, the framework introduces robust governance requirements, particularly for asset-referenced virtual assets. These include mandates around reserve asset management, redemption rights, and legal structuring—areas often cited as risk factors in digital asset markets.

Matthew White emphasised that clear issuance standards are critical for long-term market stability.

“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,” White stated.

A Global Benchmark—With Caution

While the Guidance sets a new global benchmark for virtual asset regulation, VARA underscored that compliance does not equate to endorsement. The regulator clarified that meeting issuance requirements does not imply approval of any specific asset, issuer, or distribution activity.

Market participants remain responsible for evaluating the risks associated with digital assets, reinforcing the principle that regulation can enable transparency and structure—but not eliminate inherent market volatility.

Positioning Dubai as a Digital Asset Leader

With this latest regulatory milestone, Dubai continues to strengthen its position as a global hub for digital asset innovation. By combining clear rules with strong governance expectations, VARA is aiming to strike a balance between fostering innovation and maintaining market integrity—setting a precedent that other jurisdictions may soon look to follow.