Dubai’s Virtual Assets Regulatory Authority (VARA) has released new guidance clarifying how companies can issue digital tokens under its Virtual Asset Issuance Rulebook, providing greater regulatory clarity for businesses operating in the emirate’s growing crypto sector.
The guidance outlines the standards companies must meet when creating and distributing virtual assets in Dubai. According to VARA, the rules are intended to strengthen transparency, ensure investor protection, and establish clearer operational expectations for projects planning to introduce tokens into the market.
VARA serves as the primary regulator for virtual asset activities across Dubai’s mainland and most of its free zones, excluding the Dubai International Financial Centre (DIFC). Since its establishment, the authority has been responsible for supervising the issuance, trading, and custody of digital assets while supporting the emirate’s ambition to position itself as a global center for blockchain and Web3 innovation.
Clearer Requirements for Token Issuers
Under the issuance rulebook, any company seeking to create a virtual asset as part of its business operations must meet regulatory requirements before launching the token.
The new guidance explains that issuers are expected to provide detailed information about their projects, including the structure of the token, its intended use, and the potential risks associated with it. Companies must also ensure that their token distribution process follows the standards set by VARA.
A key part of the requirement is the publication of a comprehensive whitepaper. This document must clearly explain the purpose of the token, the underlying technology supporting the project, governance industry.
In recent years, the regulator has introduced a series of rulebooks covering various crypto-related activities, including trading services, custody solutions, lending platforms, and token issuance. These frameworks are designed to ensure that companies operating in Dubai’s crypto market maintain strong compliance standards and clear risk management practices.
Dubai has steadily positioned itself as a favorable destination for blockchain companies and crypto startups. The emirate introduced Virtual Assets Law No. 4 of 2022, which established VARA and created a dedicated legal framework for digital asset activities.
Through this framework, businesses involved in cryptocurrency services,such as exchanges, custodians, and token issuers,must obtain regulatory approval before operating within or from Dubai.
The new guidance on the Virtual Asset Issuance Rulebook adds further clarity for companies planning to launch digital tokens in the region, reinforcing Dubai’s approach of combining technological innovation with clear regulatory standards for the virtual asset economy.
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