Dubai has become the first jurisdiction to formally define how virtual assets must be created, disclosed, and distributed within a fully licensed framework, marking a significant step in global digital asset regulation.

The Virtual Assets Regulatory Authority released its Guidance on the Virtual Assets Issuance Rulebook, offering market participants a clear and practical framework for navigating the emirate’s evolving digital asset ecosystem. The publication complements existing regulations and establishes a structured approach to issuing virtual assets.

The Guidance introduces three distinct issuance pathways. Category 1 applies to fiat-referenced and asset-referenced virtual assets and requires full licensing. Category 2 involves issuance through licensed distributors, while exempt virtual assets face limited requirements due to restricted functionality.

According to VARA Chief Executive Officer Matthew White, the framework is designed to strengthen transparency and governance while supporting innovation. The Guidance mandates detailed disclosures, including comprehensive whitepapers and risk statements, to ensure users can make informed decisions.

It also clarifies the responsibilities of issuers and distributors, particularly in Category 2 models where distributors must conduct due diligence and continuously validate compliance. VARA General Counsel Ruben Bombardi emphasized that clear disclosure standards are central to building trust and maintaining market integrity.

The framework further outlines governance expectations, ongoing disclosure obligations, and rules for asset-referenced virtual assets, including reserve requirements and redemption rights.

VARA stressed that compliance does not equate to regulatory endorsement, placing responsibility on market participants to assess risks and adhere to all applicable laws. The move reinforces Dubai’s ambition to position itself as a global hub for responsible and transparent virtual asset innovation.

News Source: Emirates News Agency