Dubai VARA Publishes First Global Guidance on Virtual Asset Issuance

This guidance establishes a global benchmark for virtual asset regulation, potentially influencing other jurisdictions to adopt similar frameworks.

• On April 9, 2026, Dubai's Virtual Assets Regulatory Authority (VARA) published the world's first dedicated guidance on virtual asset issuance.
• The guidance categorizes virtual asset issuances into three categories, promoting transparency and investor protection.
• VARA aims to enhance governance and responsible innovation in the digital asset market, reinforcing Dubai's position as a global fintech leader.

• Dubai's VARA was established in 2022 as the first dedicated regulator for virtual assets outside free zones, setting a precedent for regulatory frameworks worldwide.
• The UAE has seen over US$30 billion in inflows into its virtual assets market, with retail growth exceeding 80%, indicating a robust demand for regulated digital financial products.
• The guidance interprets existing regulations and mandates comprehensive disclosures, governance, and risk management practices, aiming to build trust in the market.

• Category 1 includes licensed fiat-referenced virtual assets, such as stablecoins, and asset-referenced virtual assets, like tokenized real-world assets (RWAs). This category requires issuers to obtain a license from VARA, ensuring that only compliant entities can operate in this space.
• Category 2 pertains to assets distributed by licensed Virtual Asset Service Providers (VASPs) after conducting due diligence. This layer of oversight is designed to protect investors by ensuring that only vetted assets reach the market.
• Exempt assets are those with limited utility, which can be issued without the stringent requirements of the first two categories, allowing for innovation while still maintaining a level of regulatory oversight.

• Investors in virtual assets: Enhanced protection and clarity around investment risks and opportunities.
• Virtual Asset Service Providers (VASPs): Need to comply with new licensing and operational requirements, impacting their business models.
• Regulatory bodies in other jurisdictions: May feel pressure to adopt similar frameworks, influencing global regulatory practices.

• Investor adoption rates: Monitoring how quickly investors engage with newly regulated virtual assets will indicate market confidence.
• Responses from other jurisdictions: Watch for regulatory changes in other countries that may follow Dubai’s lead, potentially leading to a more unified global approach.
• Market performance of regulated assets: Tracking the performance of assets under the new guidance will provide insights into the effectiveness of VARA's framework.