VARA VA Issuance Rulebook

Rules for every Entity issuing a virtual asset in Dubai: prohibited VAs, Category 1 (licensed) and Category 2 (via a licensed distributor) issuance, exempt VAs, whitepapers and risk disclosures, with annexes for fiat-referenced and asset-referenced virtual assets. Current version effective 19 June 2025.

Summary

The Virtual Asset Issuance Rulebook applies to every Entity in Dubai outside the DIFC that issues a virtual asset in the course of a business, whether or not it is otherwise a VASP. Whether an issuance is in the course of a business is judged on holding out, regularity and scale, any commercial element and remuneration, and the test expressly includes non-profit and charitable organisations and foundations. The version in force took effect on 19 June 2025.

Issuances fall into three categories. Category 1, the issuance of fiat-referenced virtual assets (FRVAs), asset-referenced virtual assets (ARVAs) or other assets VARA designates, is a VA Activity requiring a VARA Licence and compliance with the four compulsory Rulebooks; the Licence may be revoked if nothing is issued within six months of approval or the issuer misled VARA. Category 2 covers any other virtual asset that is not exempt: no VARA licence is needed, but all placement and distribution must go through a Licensed Distributor, which takes responsibility for validating the issuer's compliance, and VARA does not approve the asset. Exempt VAs (non-transferable assets, assets redeemable only for goods, services or discounts with the issuer or its designated merchants, and others VARA designates) need nothing before issue but remain under VARA supervision. Anonymity-enhanced cryptocurrencies are prohibited.

All issuers must act with integrity, diligence and adequate resources, communicate clearly, comply with UAE and foreign law including consumer protection, and act in an environmentally responsible manner. Except for exempt assets, every issuer must publish a Whitepaper meeting Schedule 1 and a plain-language Risk Disclosure Statement before the asset is offered or marketed, keep both accurate, notify holders of changes in advance, and keep all versions for eight years after the asset leaves circulation; civil liability for their contents cannot be excluded. VARA may order an issuer to suspend issuance.

Annex 1 sets the FRVA rules: stablecoins referencing the AED stay with the Central Bank; FRVAs may be used only within the virtual-asset ecosystem and not to pay for goods or services in the UAE; they must be at least 100% backed by reserve assets in cash or short-dated government instruments, audited and disclosed monthly; holders may redeem at par within one Working Day without fees; and paid-up capital is AED 1,500,000 plus 2% of available supply. Annex 2 sets the ARVA rules for tokens referencing other assets: ownership rights must be legally effective, VARA may require a legal opinion, reserves must secure holders' rights, and paid-up capital is the higher of AED 1,500,000 or 2% of the 24-month average market value of reserve assets.

Who it applies to

Every Entity in Dubai outside the DIFC that issues a virtual asset in the course of a business, including foundations and non-profit bodies; VASPs licensed for Category 1 issuance of fiat-referenced or asset-referenced virtual assets; and Licensed Distributors placing Category 2 issuances.

Contents

English official text in 116 rules. Open the full text or jump to a provision:

1. Rule I.A.1
2. Rule I.A.2 — “In the course of a business” requirement
3. Rule I.A.3
4. Rule I.B.1
5. Rule I.C.1
6. Rule I.C.2
7. Rule I.C.3
8. Rule I.D.1
9. Rule I.D.2
10. Rule I.D.3
11. Rule I.D.4 — Licensing process
12. Rule I.D.5 — FRVA Rules
13. Rule I.D.6 — ARVA Rules
14. Rule I.D.7 — Revocation or Suspension
15. Rule I.D.8
16. Rule I.E.1
17. Rule I.E.2
18. Rule I.E.3
19. Rule I.E.4
20. Rule I.E.5
21. Rule I.F.1
22. Rule I.F.2
23. Rule II.1
24. Rule III.A.1
25. Rule III.A.2
26. Rule III.B.1 — Initial Whitepaper
27. Rule III.B.2
28. Rule III.B.3
29. Rule III.B.4
30. Rule III.B.5 — Whitepaper updates
31. Rule III.B.6
32. Rule III.B.7
33. Rule III.C.1 — Initial Risk Disclosure Statement
34. Rule III.C.2 — Risk Disclosure Statement updates
35. Rule III.C.3
36. Rule IV.1
37. Rule IV.2
38. Rule IV.3
39. Rule IV.4
40. Rule A.1
41. Rule A.2
42. Rule A.3
43. Rule A.4
44. Rule A.5
45. Rule I.A.1
46. Rule I.A.2
47. Rule I.A.3
48. Rule I.A.4
49. Rule I.A.4
50. Rule I.B.1
51. Rule I.B.2 — Approval of each FVRA
52. Rule I.B.3 — Approval conditions
53. Rule I.B.4 — AED as Reference Currency
54. Rule I.B.5 — Use of FRVAs in VA ecosystem only
55. Rule I.B.6 — Currencies of sanctioned countries or territories
56. Rule I.C.1
57. Rule I.C.2
58. Rule I.C.3
59. Rule II.A.1
60. Rule II.B.1
61. Rule II.B.2
62. Rule II.B.3
63. Rule III.A.1
64. Rule III.A.2
65. Rule III.A.3
66. Rule III.B.1
67. Rule III.B.2
68. Rule III.B.3
69. Rule III.B.4
70. Rule III.B.5
71. Rule III.B.6 — Conflicts of interest
72. Rule III.B.7
73. Rule III.C.1
74. Rule III.C.2
75. Rule III.C.3
76. Rule III.C.4
77. Rule III.D.1
78. Rule III.D.2
79. Rule III.E.1
80. Rule III.E.2
81. Rule III.F.1
82. Rule I.A.1
83. Rule I.A.2
84. Rule I.A.3
85. Rule I.A.4
86. Rule I.A.5
87. Rule I.B.1
88. Rule I.B.2 — Approval of each ARVA
89. Rule I.B.3 — Approval conditions
90. Rule I.B.4 — Applicable Rules
91. Rule I.C.1
92. Rule I.C.2
93. Rule I.C.3
94. Rule II.A.1
95. Rule II.B.1
96. Rule II.B.2
97. Rule III.A.1
98. Rule III.A.2 — Reference Asset
99. Rule III.B.1
100. Rule III.B.2 — Legal opinion
101. Rule III.C.1
102. Rule III.C.2
103. Rule III.C.3
104. Rule III.C.4 — Legal opinion
105. Rule III.C.5 — Conflicts of interest
106. Rule III.D.1
107. Rule III.D.2
108. Rule III.D.3
109. Rule III.E.1
110. Rule III.E.2
111. Rule III.E.3
112. Rule III.E.4
113. Rule III.E.5
114. Rule III.F.1
115. Rule III.F.2
116. Rule III.G.1

Key provisions

Obligations and deadlines

• Publish a Whitepaper and Risk Disclosure Statement before offering or marketing any non-exempt virtual asset.
• Keep every version of the Whitepaper and Risk Disclosure Statement for eight years after the asset leaves circulation.
• Use a Licensed Distributor for all placement and distribution of a Category 2 virtual asset.
• Obtain a VARA Licence before any Category 1 issuance and issue within six months of approval.
• FRVA issuers must keep reserves of at least 100%, audited and disclosed every month.
• FRVA issuers must redeem at par within one Working Day without charging fees.
• Notify holders of changes to a virtual asset before they take effect, except urgent security responses.

Penalties

Rule IV.2 lets VARA require an issuer to suspend issuance and impose additional requirements, and the revocation rule for Category 1 lets it revoke a licence, including where the asset is not issued within six months or the licence was obtained by misleading statements. Issuing a virtual asset in breach of the issuance requirement in the VARA Regulations is a listed ground for fines under Schedule 3 of those Regulations, and the Rulebook's disclaimer makes any representation that VARA endorses an issuer or asset a breach of the Regulations.

History and citations

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