Dubai regulator clarifies real-world asset tokenization rules: Lawyer
Dubai's Virtual Asset Regulatory Authority (VARA) updated its Rulebook for virtual asset service providers, introducing regulations for real-world asset (RWA) tokenization. Market participants have until June 19 to comply. The new rules clarify the issuance and distribution of RWA tokens, marking a shift from theoretical concepts to regulatory reality in Dubai and the UAE. RWAs are seen as a foundational layer for institutional blockchain adoption, with VARA categorizing them as Asset-Referenced Virtual Assets (ARVA). Issuers must obtain a Category 1 Virtual Asset Issuance license, provide a comprehensive white paper, and maintain a paid-up capital of 1.5 million UAE dirhams. They are also subject to monthly audits and ongoing oversight. The updated regulations aim to provide clarity and a viable path for RWA tokenization, addressing previous challenges faced by security token offerings.
