The Virtual Assets Regulatory Authority (VARA) has officially issued its Guidance on the Virtual Assets Issuance Rulebook. This regulatory milestone makes Dubai the first jurisdiction globally to codify exactly how digital assets must be created, disclosed, and distributed within a fully licensed environment.
The newly published Guidance complements VARA’s existing Issuance Rulebook. It serves as a practical, authoritative reference for market participants, explaining how Dubai’s issuance regime applies to different types of issuers and various categories of virtual assets.
Three distinct issuance pathways
To help issuers and Virtual Asset Service Providers (VASPs) navigate the regulatory landscape, the framework draws clear lines between three specific issuance pathways:
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Category 1 Virtual Asset Issuances: This pathway applies to fiat-referenced and asset-referenced Virtual Assets, and requires direct licensing.
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Category 2 Issuances: These issuances must be facilitated strictly through Licensed Distributors. The Guidance clarifies that these distributors are required to conduct due diligence and ongoing validation to ensure compliance with the Rulebook.
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Exempt Virtual Assets: Due to their restricted functionality, these assets are subject to limited regulatory requirements.
Anchoring investor protection through disclosure
A central pillar of the new Guidance is VARA’s commitment to disclosure-led regulation. Issuers are now explicitly required to provide comprehensive Whitepapers and Risk Disclosure Statements. These documents must be accurate, clear, and easily accessible to prospective users to promote informed decision-making across the digital asset ecosystem.
Ruben Bombardi, general counsel at VARA, emphasised the necessity of transparent communication in the evolving market.
“Trust is built through clarity, and clarity begins with disclosure,” Bombardi stated. “By strengthening the standards around how virtual assets are issued and communicated to the market, this Guidance reinforces Dubai’s position as a jurisdiction that enables responsible innovation while safeguarding market integrity.”
Setting a global benchmark for governance
The framework goes beyond initial disclosures to outline strict expectations regarding ongoing governance and the specific treatment of Asset-Referenced Virtual Assets. This includes clear mandates around Reserve Assets, redemption rights, and legal structuring.
Matthew White, chief executive officer of VARA, noted that these standards are essential for the industry’s long-term viability.
“Clear issuance standards are fundamental to building resilient and transparent Virtual Asset markets,” White explained. “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.”
Despite the rigorous new standards, VARA clarified that compliance with the issuance requirements does not automatically constitute a regulatory endorsement of any specific virtual asset, issuer, or distribution activity. Market participants remain ultimately responsible for assessing the inherent risks associated with digital assets.