REGULATION | Dubai Regulator Issues Guidance on Token Launches with a Disclosure-Driven Approach

Dubai’s Virtual Assets Regulatory Authority (VARA) has issued fresh guidance clarifying how crypto tokens, particularly stablecoins and real-world asset (RWA) tokens, should be issued, disclosed, and distributed, as the emirate sharpens its digital asset rulebook.

The guidance does not introduce new laws but instead interprets VARA’s existing issuance framework aiming to give market participants clearer direction on compliance and structure.

Under the updated framework, token issuances are divided into three categories. These include

• fiat- or asset-referenced tokens such as stablecoins,
• tokens that must be distributed through VARA-licensed intermediaries, and
• exempt tokens with limited functionality.

VARA also clarified responsibilities across the issuance lifecycle placing greater accountability on licensed distributors in certain cases to conduct due diligence and ensure ongoing compliance.

The regulator emphasized a disclosure-driven approach requiring issuers to provide clear and accessible information through whitepapers and risk statements. For RWA and stablecoin projects, this includes

• transparency around reserve assets,
• redemption rights, and
• legal structuring.

Officials say the move is part of Dubai’s broader strategy to build a tailored regulatory regime for virtual assets rather than forcing crypto products into traditional securities or payments frameworks.

The guidance is expected to improve regulatory clarity for issuers while helping investors better understand the risks and characteristics of digital assets operating within Dubai’s licensed ecosystem.

Stay tuned to BitKE on virtual assets regulation globally.

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