Dubai's Virtual Asset Regulatory Authority (VARA) has updated its guidelines on real-world asset (RWA) tokenization, allowing the issuance and listing of RWAs on secondary markets. The regulator has set a compliance deadline of June 19 for market participants. UAE lawyer Irina Heaver stated that this clarity transforms RWA token issuance from a theoretical concept into a reality within Dubai and the broader UAE. Heaver argued that characteristics of RWA tokens, defined as Asset-Referenced Virtual Assets (ARVA), represent direct or indirect ownership of real-world assets and are essential for institutional blockchain adoption. Issuers are required to obtain a Category 1 Virtual Asset Issuance license, prepare a comprehensive white paper, and maintain significant capital reserves. The new rules aim to provide a structured path for the RWA tokenization process, reflecting a significant shift from mere speculation to tangible regulatory frameworks in the region.

Source 🔗