The newly updated guidelines from Dubai’s crypto regulator include provisions in the tokenization of the real-world asset (RWA) and clarify the policies for the providers.
On May 19, Dubai’s Virtual Asset Regulatory Authority (VARA) Released its -updated rulebook For the Virtual Asset Service Provider (Vasps) that operates in the region. The regulator has provided market participants until June 19 to comply with new policies.
The cointelegraph regulator had previously stated that it enhanced administration mechanisms and brought consistency to activity-based policies. One of the most well -known changes includes regulatory clarity in RWA tokens.
Irina Heaver, a United Arab Emirates-based law firm Neoslegal’s law firm, told Cointelegraph that the updated policies clarified the release and distribution of the RWA.
“The release of real-world asset tokens and listing them in the second market is no longer theoretical,” Heaver told cointelegraph. “This is a regulation of fact in Dubai and wider UAE.”
A “viable” path to realize RWA hype
Heavier compared to rwas in Security Token Offerings (STO)An earlier attempt from the crypto space to look forward to security such as stocks, bonds and real estate investment trusts. However, UAE Crypto attorney said Stos “died of a peaceful death from 2018 to 2019.”
The lawyer told Cointelegraph Stos that it was unable to do so due to the lack of regulation clarity, viable secondary trading area in the market, institutional investor and liquidity.
However, the situation is different for RWWA. Heaver told cointelegraph that RWAs are the next foundational layer for institutional blockchain adoption and virtual assets. Heaver said the new vara policies cover them as tokens referred to by the Asset (ARVA) tokens. He said:
“The newly updated Virtual Assets Issuance Rulebook (May 2025) addresses these failures.
The lawyer said it would solve an issue with jurisdictions such as Switzerland, where token release was possible, but the list and secondary trade remain irregular.
Related: Gov’t Dubai agencies to llink real estate enrollment with tokenization of possession
The lawyer shares requirements for RWA providers
Heaver said ARVA tokens are defined under the law of Dubai as represents direct or indirectly owned by real-world assets, giving the right to receive or share income and purporting to maintain a stable value by reference to real-world assets or revenues.
ARVA tokens are also supported or collated by real-world assets or forming a derivative, wrapped, double, or fractionalized version of another ARVA.
The lawyer said the providers should meet the specific requirements, including a virtual issuance of virtual issues, a comprehensive white role and a statement of danger disclosure.
In addition, those who give should have a paid capital of 1.5 million UAE Dirhams (about $ 408,000) or 2% of properties held. The providers also undergo monthly independent obligations to the audit and should comply with the ongoing administration.
“The vara provides the clarity of regulation, and it gives the industry a viable, implemented path to the hype of the RWA tokenization,” Heavy told the cointelegraph. “This is important because it has marked a move, from theory to implementation, from the fiction to the plot.”
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