Dubai Clarifies Token Issuance Rules for RWAs and Stablecoins

Dubai’s Virtual Assets Regulatory Authority (VARA) has released new guidance to clarify regulations regarding stablecoins and real-world asset (RWA) tokens. The new guidelines do not create new legislation, but explain how VARA’s existing Virtual Asset Issuance Rulebook should be applied. The framework introduces three distinct pathways, distinguishing between Category 1 and Category 2 issuances.

New Framework by VARA

The new framework by VARA draws clear lines between Category 1 and 2 issuances. The Category 1 includes tokens such as fiat-referenced virtual assets and asset-referenced virtual assets. According to the new rules, the Category 2 issuances must be distributed via a VARA-licensed intermediary. It also exempts virtual assets with limited functionality.

The move is aimed at addressing the different risks associated with various token types, rather than applying the same regularity rules for all models. The new framework places greater responsibility on licensed distributors involved in Category 2 issuances. It requires them to carry out due diligence and ensure ongoing compliance.

VARA said the framework is designed specifically for virtual assets, setting Dubai apart from other regimes. The clarification in new rules comes shortly after the regulator expanded its exchange rulebook to include exchange-traded crypto derivatives. VARA’s General Counsel, Ruben Bombardi, said the new issuance model offers greater regulatory certainty because many virtual assets do not fit into traditional legal categories.

He added that clearer disclosure requirements, such as mandatory whitepapers and risk statements, are intended to improve transparency while also helping investors make informed decisions. VARA believes the new framework could attract attention from international regulators.