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Dubai regulator clarifies real-world asset tokenization rules: Lawyer

Newly updated guidelines from Dubai’s crypto regulator include provisions on real-world asset (RWA) tokenization and clarify rules for issuers. 

On May 19, Dubai’s Virtual Asset Regulatory Authority (VARA) released its updated Rulebook for virtual asset service providers (VASPs) operating in the region. The regulator gave market participants until June 19 to comply with the new rules. 

The regulator previously told Cointelegraph that it had enhanced supervisory mechanisms and brought consistency across activity-based rules. One of the more prominent changes includes regulatory clarity on RWA tokens. 

Irina Heaver, partner at the United Arab Emirates-based law firm NeosLegal, told Cointelegraph that the updated rules clarify RWA issuance and distribution. 

“Issuing real-world asset tokens and listing them on secondary markets is no longer theoretical,” Heaver told Cointelegraph. “It’s now a regulatory reality in Dubai and the broader UAE.”

A “viable” path to realize RWA hype

Heaver compared RWAs to security token offerings (STOs), an earlier attempt from the crypto space to tokenize securities like stocks, bonds and real estate investment trusts. However, the UAE crypto lawyer said that STOs “died a peaceful death in 2018 to 2019.” 

The lawyer told Cointelegraph STOs did not work out because of the lack of regulatory clarity, viable secondary market trading venues, institutional investor appetite and liquidity. 

Still, the situation is different for RWAs. Heaver told Cointelegraph that RWAs are the next foundational layer for institutional adoption of blockchain and virtual assets. Heaver said that VARA’s new rules already cover them as Asset-Referenced Virtual Assets (ARVA) tokens. She said: 

“VARA’s newly updated Virtual Asset Issuance Rulebook (May 2025) addresses these failures head-on. Regulated exchanges and broker-dealers in Dubai are now authorized to distribute and list ARVA tokens.”

The lawyer said this solves an issue in jurisdictions like Switzerland, where token issuance is possible, but listing and secondary trading remain unregulated. 

Related: Dubai gov’t agencies to link real estate registry with property tokenization

Lawyer shares requirements for RWA issuers

Heaver said ARVA tokens are defined under Dubai law as representing direct or indirect ownership of real-world assets, granting entitlement to receive or share income and purporting to maintain a stable value by reference to real-world assets or income. 

ARVA tokens are also backed or collateralised by such real-world assets or constitute a derivative, wrapped, duplicated, or fractionalised version of another ARVA. 

The lawyer said issuers must meet specific requirements, including a Category 1 Virtual Asset Issuance license, a comprehensive white paper and a risk disclosure statement. 

In addition, issuers must have a paid-up capital of 1.5 million UAE dirhams (about $408,000) or 2% of reserve assets held. The issuers are also subjected to monthly independent audit obligations and must adhere to ongoing supervisory oversight. 

“VARA is providing regulatory clarity, and it’s giving the industry a viable, enforceable path to turn the hype of RWA tokenization into reality,” Heaver told Cointelegraph. “This matters because it marks a shift, from theory to execution, from fiction to framework.”

Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee

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Just 25% of public think Sir Keir Starmer will win next election – with welfare row partly to blame

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Just 25% of public think Sir Keir Starmer will win next election - with welfare row partly to blame

Only a quarter of British adults think Sir Keir Starmer will win the next general election, as the party’s climbdown over welfare cuts affects its standing with the public.

A fresh poll by Ipsos, shared with Sky News, also found 63% do not feel confident the government is running the country competently, similar to levels scored by previous Conservative administrations under Boris Johnson and Rishi Sunak in July 2022 and February 2023, respectively.

Politics latest: ‘A moment of intense peril’ for PM

The survey of 1,080 adults aged 18-75 across Great Britain was conducted online between 27 and 30 June 2025, when Labour began making the first of its concessions, suggesting the party’s turmoil over its own benefits overhaul is partly to blame.

The prime minister was forced into an embarrassing climbdown on Tuesday night over his plans to slash welfare spending, after it became apparent he was in danger of losing the vote owing to a rebellion among his own MPs.

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Govt makes last-minute concession on welfare bill

The bill that was put to MPs for a vote was so watered down that the most controversial element – to tighten the eligibility criteria for personal independence payments (PIP) – was put on hold, pending a review into the assessment process by minister Stephen Timms that is due to report back in the autumn.

The government was forced into a U-turn after Labour MPs signalled publicly and privately that the previous concession made at the weekend to protect existing claimants from the new rules would not be enough.

More on Benefits

While the bill passed its first parliamentary hurdle last night, with a majority of 75, 49 Labour MPs still voted against it – the largest rebellion in a prime minister’s first year in office since 47 MPs voted against Tony Blair’s Lone Parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.

It left MPs to vote on only one element of the original plan – the cut to Universal Credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.

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Govt makes last-minute concession on welfare bill

An amendment brought by Labour MP Rachael Maskell, which aimed to prevent the bill progressing to the next stage, was defeated but 44 Labour MPs voted for it.

The incident has raised questions about Sir Keir’s authority just a year after the general election delivered him the first Labour landslide victory in decades.

Read more:
How did your MP vote on Labour’s welfare bill?
The PM faced down his party on welfare and lost

And on Wednesday, Downing Street insisted Rachel Reeves, the chancellor, was “not going anywhere” after her tearful appearance in the House of Commons during prime minister’s questions sparked speculation about her political future.

The Ipsos poll also found that two-thirds of British adults are not confident Labour has the right plans to change the way the benefits system works in the UK, including nearly half of 2024 Labour voters.

Keiran Pedley, director of UK Politics at Ipsos, said: “Labour rows over welfare reform haven’t just harmed the public’s view on whether they can make the right changes in that policy area, they are raising wider questions about their ability to govern too.

“The public is starting to doubt Labour’s ability to govern competently and seriously at the same levels they did with Boris Johnson and Rishi Sunak’s governments. Labour will hope that this government doesn’t end up going the same way.”

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Emotional Reeves a painful watch – and a reminder of tough decisions ahead

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Emotional Reeves a painful watch - and a reminder of tough decisions ahead

It is hard to think of a PMQs like it – it was a painful watch.

The prime minister battled on, his tone assured, even if his actual words were not always convincing.

But it was the chancellor next to him that attracted the most attention.

Rachel Reeves looked visibly upset.

Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA
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Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA

It is hard to know for sure right now what was going on behind the scenes, the reasons – predictable or otherwise – why she appeared to be emotional, but it was noticeable and it was difficult to watch.

Reeves looks visibly upset as Starmer defends welfare U-turn – politics latest

Her spokesperson says it was a personal matter that they will not be getting into.

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Even Kemi Badenoch, not usually the most nimble PMQs performer, singled her out. “She looks absolutely miserable,” she said.

Anyone wondering if Kemi Badenoch can kick a dog when it’s down has their answer today.

The Tory leader asked the PM if he could guarantee his chancellor’s future: he could not. “She has delivered, and we are grateful for it,” Sir Keir said, almost sounding like he was speaking in the past tense.

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Rachel Reeves looked visibly upset behind Keir Starmer at PMQs. Pic PA

It is important to say: Rachel Reeves’s face during one PMQs session is not enough to tell us everything, or even anything, we need to know.

But given the government has just faced its most bruising week yet, it was hard not to speculate. The prime minister’s spokesperson has said since PMQs that the chancellor has not offered her resignation and is not going anywhere.

But Rachel Reeves has surely seen an omen of the impossible decisions ahead.

How will she plug the estimated £5.5bn hole left by the welfare climbdown in the nation’s finances? Will she need to tweak her iron clad fiscal rules? Will she come back for more tax rises? What message does all of this send to the markets?

If a picture tells us a thousand words, Rachel Reeves’s face will surely be blazoned on the front pages tomorrow as a warning that no U-turn goes unpunished.

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Politics

Trump’s crypto ventures have added $620M to his net worth — Report

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Trump’s crypto ventures have added 0M to his net worth — Report

Trump’s crypto ventures have added 0M to his net worth — Report

With the US president’s ties to his family-backed business, World Liberty Financial, and a memecoin launch, Donald Trump has seen his personal wealth increase by millions in 2025.

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