DUBAI, April 9, 2026 – Dubai's Virtual Assets Regulatory Authority (VARA) has mandated that all entities issuing digital assets within the emirate must comply with its newly published Virtual Assets Issuance Rulebook, which the regulator claims is the world's first dedicated regulatory guidance for virtual asset issuance. The rulebook provides a practical framework for how the issuance regime applies across different asset categories and issuer types, establishing a landmark regulatory standard for the global digital assets market.

Approved versus non-approved assets

Approved virtual assets include Fiat-Referenced Virtual Assets (“FRVAs”); a VARA-approved fiat currency, the value of which an FRVA purports to maintain a stable reference to; b. which is controlled by a central bank of any country(ies) or territory(ies) which are not subject to any sanctions in accordance with Federal AML-CFT Laws.

However, VARA does not recognize AED stablecoins as they need the regulatory approval of the Central Bank of the UAE, nor does it recognize CBDCs or tokenized bank deposits used for interbank settlements. Currencies of sanctioned countries are not allowed.

Additionally, FRVAs can only be used for the purchase and/or sale of assets in the VA ecosystem and may not be used as a means of payment for goods or services within the UAE.

Also allowed are ARVA, which represents, or purports to represent, a direct right of ownership of the Reference Assets, or tokenized assets, RWAs.

VARA reiterates that issuing Anonymity-Enhanced Cryptocurrencies and all VA Activity(ies) related to them are prohibited in the Emirate.

VARA also talks about Category 2 virtual assets, where no license is required, but distribution must be carried out through a licensed distributor; these include Category 1 VA issuance or exempt VAs.

Finally, there are virtual assets that don’t need any requirements, such as non-transferable virtual assets, redeemable closed-loop virtual assets, or assets that can be redeemed or exchanged for goods, services, discounts, or purchases.

Matthew White, Chief Executive Officer, VARA, said, “Clear issuance standards are fundamental to building resilient and transparent Virtual Asset markets. 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.”

The Guidance reinforces VARA’s commitment to disclosure-led regulation, requiring issuers to provide comprehensive whitepapers and risk disclosure statements that are clear, accurate, and accessible to prospective users. These requirements are intended to enable informed decision-making and promote greater transparency across the ecosystem.

It also clarifies the respective responsibilities of issuers and licensed distributors, particularly in the context of Category 2 issuances, where distributors are required to conduct due diligence and ongoing validation of compliance with the Rulebook.

Ruben Bombardi, General Counsel, VARA, added, “Trust is built through clarity, and clarity begins with disclosure. 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.”

The Guidance further outlines expectations relating to governance, ongoing disclosure obligations, and the treatment of Asset-Referenced Virtual Assets, including requirements around Reserve Assets, redemption rights, and legal structuring.

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