Virtual Assets Regulatory Authority has issued new guidance clarifying how token issuers should launch stablecoins and real-world asset (RWA) tokens in Dubai. The framework introduces three issuance categories, separating fiat-referenced tokens, asset-backed tokens, and limited-function assets, while defining disclosure and governance responsibilities for each.

Under the updated approach, Category 1 covers stablecoins and asset-referenced tokens with stricter requirements around reserves, redemption rights, and legal structure. Category 2 tokens must be distributed through VARA-licensed intermediaries, which are responsible for due diligence and ongoing compliance checks. A third group includes exempt tokens with limited functionality and lighter obligations.

The guidance aims to create a tailored crypto issuance regime rather than forcing digital assets into traditional securities or payments laws. Regulators emphasized clearer whitepapers, transparent risk disclosures, and structured distribution rules to support investor protection while encouraging tokenization growth in stablecoins and RWAs.
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