Proxima Eight FZE LLC
Business Centre, Sharjah Publishing City Free Zone, Sharjah, United Arab Emirates
Business Centre, Sharjah Publishing City Free Zone, Sharjah, United Arab Emirates
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Issuing Tokens in Dubai: VARA Regulatory Framework for Token Issuers
VARA's token issuance framework is one of the most structured globally - with two categories, mandatory whitepaper approval, and strict marketing restrictions. We manage the full process from token design to regulatory approval.
9+ Years of Compliance Expertise
End-to-End Execution
Is This You?
- You're planning to issue a token in or from Dubai and need to understand VARA's requirements
- You've already started marketing your token and discovered you needed VARA approval first
- You're launching a stablecoin or fiat-backed token and need Category 1 compliance
- You're a global project wanting to use Dubai as your regulatory base for token issuance
- You're issuing a utility, governance, or other token and need Category 2 approval
The Most Important Thing to Know
VARA prohibits any public communication about a token before whitepaper approval. This means:
If you've already communicated publicly about your token without VARA approval, you may already be in violation of the Marketing Rulebook. Contact us before doing anything further.
- No social media posts about the upcoming token
- No community announcements
- No private investor communications that describe the token
- No website pages, landing pages, or marketing materials
If you've already communicated publicly about your token without VARA approval, you may already be in violation of the Marketing Rulebook. Contact us before doing anything further.
Category 1 vs Category 2: Which Applies to You?
Fiat-backed stablecoin (USD, EUR, AED pegged)
Category 1 - Full VARA Licence required
Utility token, governance token
Category 2 - VARA prior approval required
Commodity-backed token (gold, oil)
Category 2 - VARA prior approval required
Algorithmic stablecoin (no reserve)
Prohibited - VARA does not permit these
Anonymity-enhanced token (Monero, Zcash)
Prohibited - VARA does not permit these
Security-like token (profit-sharing, equity-like)
May fall under CMA/ADGM - separate analysis required
What We Do for You
- Token classificationCategory 1 vs 2, regulatory treatment, securities law analysis. Getting this wrong is expensive.
- Whitepaper preparationVARA-compliant whitepaper covering: token purpose, technical architecture, rights of holders, risk factors, issuer governance, use of proceeds.
- Reserve structure (Category 1)Fiat reserve holding structure, segregated UAE bank account setup, attestation framework with approved auditor.
- AML/KYC for token saleInvestor KYC/AML procedures for the token offering process, including wallet screening.
- VARA engagementWhitepaper review and approval process managed directly with VARA. We handle all regulator communication.
- Post-issuance complianceOngoing reserve attestations (Category 1), material change procedures, periodic reporting.
Frequently Asked Questions
Category 2 whitepaper review typically takes 4-8 weeks once submitted. Category 1 full licence takes longer - 4-6 months. Timeline depends on documentation quality and whether VARA has information requests.
Tokens with equity-like rights, profit-sharing features, or investment contract characteristics may fall under CMA or ADGM/FSRA securities regulation independently of VARA's framework. We conduct a full regulatory classification analysis before any whitepaper is written.
Yes. If the issuing entity is in Dubai or the token is offered to UAE clients, VARA's framework applies regardless of which blockchain is used.
Stop all public communications immediately and contact us. We will assess the extent of the violation, advise on remediation, and manage any engagement with VARA required.
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Please note: We do not provide any personalized investment advice, token selection guidance, or transaction recommendations. AMLzone is a compliance consultancy and project management services provider, not a Virtual Asset Advisor.
Please note: We do not provide any personalized investment advice, token selection guidance, or transaction recommendations. AMLzone is a compliance consultancy and project management services provider, not a Virtual Asset Advisor.