Dubai is the first jurisdiction in the world to issue dedicated guidelines for the issuance of virtual assets

The Virtual Assets Regulatory Authority issued “VARAToday its guidelines regarding the rulebook for issuing virtual assets.

This issuance, according to a statement issued by the Authority, makes Dubai the first jurisdiction in the world to codify the principles governing the creation, disclosure and distribution of digital assets within a fully licensed environment, thus establishing the first regulatory guidelines dedicated to the issuance of virtual assets in the world.

These guidelines complement the Virtual Asset Issuance Rulebook issued by the Virtual Asset Regulatory Authority and provide market participants with a practical reference to understand how the issuance system applies to different classes of virtual assets and multiple issuer types.

This guidance is provided to issuers and virtual asset service providers.”VASPs“And market participants have a unified and reliable reference for dealing with the issuance system in Dubai, as it draws clear lines between three distinct paths to issuance, which are: Class I virtual asset issuances, which require a license and apply to virtual assets linked to fiat currencies and reference assets; Class II issuances, which are facilitated by licensed distributors; and exempt virtual assets, which are subject to limited requirements due to the nature of their restricted function.

Matthew White, CEO of the Virtual Assets Regulatory Authority, said: “Clear issuance standards are a key foundation for building robust and transparent virtual asset markets. These guidelines provide practical clarity on how the framework established by the Virtual Assets Regulatory Authority can be applied to various issuance models, ensuring that innovation is based on solid governance, solid disclosures, and responsible market practices.”

These guidelines reinforce the Virtual Assets Regulatory Authority’s commitment to the disclosure approach as a pillar of regulation, as it obliges issuers to provide comprehensive information sheets and risk disclosure data that are clear, accurate, and easy to access by potential users. These requirements aim to enable informed decision-making and enhance transparency in the entire system.

The Guidance clarifies the separate responsibilities of issuers and licensed distributors, particularly in the context of Category 2 issues, where distributors are required to carry out the necessary checks and continuous verification of compliance with the provisions of the Guidance.

Robin Bombardi, General Legal Counsel of the Virtual Assets Regulatory Authority, said: “Trust is built on clarity, and clarity begins with disclosure. By raising the standards for issuing virtual assets and communicating them with the market, these guidelines strengthen Dubai’s position as a jurisdiction that enables responsible innovation and maintains market integrity at the same time.”

The guidance reviews expectations regarding governance, ongoing disclosure obligations, and the treatment of asset-referenced virtual assets, including requirements related to reserve assets, redemption rights, and legal structures.

For its part, the Virtual Assets Regulatory Authority confirmed that compliance with issuance requirements does not constitute a regulatory endorsement of any virtual asset, issuer, or distribution activity, and market participants remain responsible for fully meeting all applicable regulations, and for assessing the risks associated with virtual assets.

The issuance comes within the framework of the Virtual Assets Regulatory Authority’s ongoing communication with stakeholders in the sector, in support of a transparent and regulated virtual assets system in Dubai.