In a move that reinforces Dubai’s ambitions to lead the global digital asset economy, the Virtual Assets Regulatory Authority (VARA) has issued its Guidance on the Virtual Assets Issuance Rulebook, marking the first time any jurisdiction has formally codified how virtual assets should be created, disclosed, and distributed within a fully licensed regulatory environment.

The newly released guidance builds on VARA’s existing rulebook, offering market participants a practical framework for navigating issuance requirements across asset categories and issuer types. It introduces a structured approach that distinguishes between three issuance pathways: Category 1 Virtual Asset Issuances, which require licensing and apply to fiat- and asset-referenced tokens; Category 2 Issuances, which are facilitated through licensed distributors; and Exempt Virtual Assets, which are subject to lighter requirements due to limited functionality.

By consolidating these pathways into a single reference point, VARA aims to provide issuers, virtual asset service providers (VASPs), and other stakeholders with greater clarity on compliance expectations within Dubai’s rapidly evolving digital asset ecosystem.

Matthew White, CEO of VARA, said that clear issuance standards are key to fostering resilient and transparent markets. He noted that the guidance offers practical clarity across different issuance models, ensuring innovation is underpinned by strong governance, robust disclosures, and accountable practices.

Central to the framework is a disclosure-led approach. Issuers are required to publish comprehensive white papers and risk disclosure statements that are accurate, accessible, and designed to support informed decision-making. The guidance also outlines the responsibilities of licensed distributors, particularly under Category 2 issuances, where due diligence and ongoing compliance checks are mandatory.

Ruben Bombardi, General Counsel and Head of Regulatory Enablement at VARA, said strengthening disclosure standards is critical to building market trust. He added that the framework reinforces Dubai’s positioning as a hub for responsible innovation while safeguarding market integrity.

Beyond issuance mechanics, the guidance sets expectations around governance, ongoing disclosure obligations, and the handling of asset-referenced virtual assets, including requirements tied to reserve backing, redemption rights, and legal structuring.

VARA also clarified that compliance with issuance requirements should not be interpreted as regulatory endorsement of any asset or issuer. Market participants remain accountable for complying with applicable regulations and for evaluating associated risks.

The publication forms part of VARA’s broader efforts to engage with industry stakeholders and establish a transparent, well-regulated virtual asset ecosystem, further cementing Dubai’s role as a global pioneer in digital asset regulation.