Virtual Assets Regulatory Authority has issued new guidance clarifying how crypto tokens should be structured, disclosed and distributed in Dubai, tightening oversight for stablecoins and real-world asset tokens.
The framework outlines three issuance categories, distinguishing between fiat- and asset-referenced tokens, intermediary-distributed tokens, and exempt assets, while assigning clear compliance responsibilities across each pathway.
“Greater regulatory clarity is a key benefit of the bespoke regime,”
Said VARA general counsel Ruben Bombardi, noting it supports “informed decision-making” by improving transparency around token risks and structures.
The guidance reinforces stricter requirements for Category 1 tokens, including stablecoins and RWA-style assets, with expectations around reserves, redemption rights and legal structuring.
Category 2 issuances must be distributed through VARA-licensed intermediaries responsible for due diligence and ongoing compliance validation, strengthening investor protections across the ecosystem.
The move forms part of Dubai’s broader strategy to build a crypto-native regulatory framework rather than relying on traditional securities or payments laws, following a recent expansion of rules to include exchange-traded crypto derivatives.
VARA said the disclosure-led regime, anchored in clear whitepapers and risk statements, is designed to set a global benchmark and may attract interest from international regulators evaluating digital asset oversight models.