Dubai’s Virtual Asset Regulatory Authority (VARA) has unveiled updated guidelines that provide a comprehensive framework for the tokenization of real-world assets (RWAs), marking a significant advancement in the emirate’s digital asset regulatory landscape.
The revised Rulebook, released on May 19, 2025, introduces clear provisions for the issuance and secondary market trading of Asset-Referenced Virtual Assets (ARVAs). These tokens represent direct or indirect ownership of tangible assets such as real estate, commodities, or income-generating instruments. The new regulations aim to transition RWA tokenization from a conceptual stage to a regulated practice within Dubai and the broader United Arab Emirates.
Legal experts highlight that the updated rules address previous challenges faced by security token offerings (STOs), which struggled due to regulatory ambiguities and limited market infrastructure. Under the new framework, regulated exchanges and broker-dealers in Dubai are authorized to distribute and list ARVA tokens, providing a structured pathway for asset tokenization.
Issuers of ARVA tokens are required to obtain a Category 1 Virtual Asset Issuance license, submit a comprehensive white paper and risk disclosure statement, and maintain a paid-up capital of at least 1.5 million UAE dirhams (approximately $408,000) or 2% of the reserve assets held. Additionally, issuers must undergo monthly independent audits and adhere to ongoing supervisory oversight.
The implementation of these guidelines positions Dubai as a leading jurisdiction in the regulation of digital assets, offering clarity and structure that could attract institutional participation and foster innovation in the tokenization of real-world assets.
