On May 19, 2025, Dubai’s Virtual Asset Regulatory Authority (VARA) released its updated rulebook for virtual asset service providers (VASPs). The regulator gave market participants until June 19 to comply with the new rules. The newly updated guidelines include provisions on real – world asset (RWA) tokenization and clarify rules for issuers. Here are the details:
Definition of ARVA Tokens: Under Dubai law, ARVA tokens represent direct or indirect ownership of real – world assets, granting entitlement to receive or share income and purporting to maintain a stable value by reference to real – world assets or income. They can also be backed or collateralized by such real – world assets or constitute a derivative, wrapped, duplicated, or fractionalized version of another ARVA.
Requirements for Issuers: Issuers must meet specific requirements, including obtaining a Category 1 virtual asset issuance license, having a comprehensive white paper and a risk disclosure statement. In addition, they must have a paid – up capital of 1.5 million UAE dirhams (about $408,000) or 2% of reserve assets held. Issuers are also subject to monthly independent audit obligations and must adhere to ongoing supervisory oversight.
According to Irina Heaver, a partner at the UAE – based law firm Neos Legal, the updated rules clarify RWA issuance and distribution. She said that issuing real – world asset tokens and listing them on secondary markets is no longer theoretical but a regulatory reality in Dubai and the broader UAE. VARA’s new rules already cover RWAs as asset – referenced virtual assets (ARVA) tokens, and regulated exchanges and broker – dealers in Dubai are now authorized to distribute and list ARVA tokens. This solves the problem in some other jurisdictions where token issuance is possible, but listing and secondary trading remain unregulated.
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