Dubai Token Issuance Rules

Dubai's Virtual Assets Regulatory Authority (VARA) has issued new guidance on token launches, tightening disclosure and governance standards for stablecoins, RWAs, and other digital assets. The framework sets out three distinct issuance pathways, drawing clear lines between Category 1 issuances, Category 2 issuances, and exempt virtual assets with limited functionality. The move is part of Dubai's push to build a bespoke regulatory framework for virtual assets, contrasting with approaches that apply general securities or payments law to token launches. The guidance also clarifies the role of licensed distributors in Category 2 issuances, making them responsible for due diligence and ongoing validation of compliance. The impact of the new guidance will be closely watched by the crypto industry, with many expecting it to provide a boost to Dubai's ambitions to become a hub for virtual asset innovation. A key date to watch is the upcoming Dubai Crypto Summit, scheduled for May, where regulators and industry leaders are expected to discuss the implications of the new guidance.