Dubai regulator VARA issues rules for digital-asset issuance

The Virtual Assets Regulatory Authority published new regulations on its website that define how digital assets and token offerings may be issued in Dubai. The rules set requirements for issuers, intermediaries and the disclosures that must accompany offerings.

Firms planning to issue tokens must register with VARA and meet operational and compliance standards. Issuers are required to provide disclosure documents that describe a token’s features, rights attached to it, the underlying technology and the business model. The rules set conduct standards for marketing and distribution.

The framework covers intermediaries involved in issuance, including sponsors, custodians and trading platforms, and outlines their obligations when facilitating offerings or secondary distributions. VARA requires appropriate custody arrangements and record-keeping to enable oversight.

Anti-money-laundering and know-your-customer safeguards are mandatory for issuers and service providers. The regulations require risk-management controls and technical security measures where relevant, such as audits of smart contracts or other security testing.

The rules distinguish offerings targeted at professional or institutional investors from those open to retail investors. Offerings available to retail buyers must meet enhanced disclosure requirements and suitability checks. The regulations also address follow-on token distributions and place obligations on market intermediaries that list or trade issued assets.

VARA retains supervisory authority to monitor compliance and may take enforcement actions under the new rules. The issuance framework complements VARA’s broader licensing regime for virtual-asset service providers. VARA was launched by Dubai’s government in 2022; the Dubai International Financial Centre continues to operate under its own financial-services regulations.

Market participants that plan token offerings or provide related services will need to align controls, documentation and technical processes with VARA’s standards. The regulator indicated additional guidance and supervisory detail may follow to help firms meet the new obligations.