Virtual Assets Issuance (Category 1) — ARVA Issuance under VARA
Tokenise real-world value—safely. We design ARVA structures with enforceable ownership, reserve controls, redemption mechanics, and disclosures that pass scrutiny.
We advise ARVA issuers end-to-end: licence, Reference-Asset mapping, reserve/custody set-up, legal opinions, audits, and marketing compliance.
WHAT “VIRTUAL ASSETS ISSUANCE (CATEGORY 1) — ARVA” COVERS
Definition
An ARVA is any VA (that is not an FRVA) which represents or references RWA and/or Income, or purports to maintain a value relative to a basket/combination of such assets (incl. wrapped/fractionalised/derivative forms). (Schedule 2 – Definitions).
Category 1 = licensed
Activity. Issuing an ARVA is a Category 1 VA Issuance and a VA Activity; rules apply cumulatively with Company, Compliance & Risk, Technology & Information, Market Conduct, and the VA Issuance Rulebook.
Approval per ARVA
Each ARVA requires prior approval from VARA; approval may be conditional (e.g., business segregation; external licences for RWA handling).
SERVICES YOU CAN OFFER UNDER THIS LICENCE
Issue ARVAs
Issue ARVAs that reference approved Reference Assets (RWA/Income) with a clear value-maintenance policy.
Offer redemptions (if provided in your design)
Redeemable for equal value in AED and other forms you disclose; if the issuer cannot process, holders may redeem against Reserve Assets.
Disclose monthly
Disclose monthly the number/value in circulation and the value/composition of Reserve Assets (if applicable), with a statement on whether the ARVA is fully backed.
COMPLIANCE GUARDRAILS THAT KEEP YOU OUT OF TROUBLE
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Value & Reference Assets |
You must demonstrate the rights/value the ARVA grants and how it derives/maintains that value; disclose the type/composition of Reference Assets and when they may change. |
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Direct right of ownership (if applicable). |
Where the ARVA represents a direct (fractional) ownership right, ensures legal title transfer, tracks token transfer; satisfy settlement/transfer-of-title rules for the RWA, and addresses mismatches between token and RWA settlement. Legal opinions may be required. |
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Reserve Assets (if stable-reference design). |
Maintain sufficient, acceptable reserves to secure holders’ rights and manage liquidity risks; custody with qualified entities; segregation, no rehypothecation/encumbrances, and prompt access to process redemptions (including conversion into AED where relevant). Legal opinion on segregation may be required. |
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Audits & reporting. |
Appoint an independent auditor; every six months audit (i) circulating ARVAs and (ii) Reserve Assets (if applicable); annual financial audit; Senior Management attestation to VARA after each audit. |
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Redemptions. |
If redemption rights are offered, no fees, reasonable timeframe, and KYC/other conditions must be met. Publish detailed policies/procedures. |
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Marketing. |
Do not use “stablecoin” or imply stable value unless: (i) you’re Licensed and approved; (ii) the ARVA references one RWA only; and (iii) Reserve Assets are maintained per Rule III.C. Include statement that ARVAs are not covered by investor-protection/deposit-guarantee schemes. |
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Capital requirement. |
Paid-Up Capital = higher of AED 1,500,000 or 2% of the average market value of Reserve Assets (24-month lookback). |
WHITEPAPER & ONGOING DISCLOSURES (WHAT MUST APPEAR)
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Whitepaper (ARVA-specific) |
Rights/value; how value is maintained; Reference Assets (types, composition, change policy); whether the ARVA confers direct ownership; Reserve Assets policy (if any) and creation/destruction flows; custody set-up; redemption rights/procedures; and risk management (credit/market/counterparty/liquidity). |
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Monthly website |
Circulating supply/value and Reserve Assets (if applicable) with a statement whether fully backed under Rule III.C.1. |
What CRYPTOVERSE Legal delivers
Licensing & scope design
Licensing & scope design (Reference-Asset mapping; approval conditions; Significant-Issuer readiness).
Ownership & title framework
Ownership & title framework (token-to-RWA legal effects; settlement/transfer compliance; legal opinions).
Reserve & custody governance
Reserve & custody governance (segregation, no rehypothecation, qualified custodians, AED convertibility).
Audit & disclosure cadence
Audit & disclosure cadence (semi-annual reserve/circulation audits; annual financials; SM attestations; monthly web disclosures).
Marketing compliance
Marketing compliance (use of “stablecoin”, mandatory disclaimers).
OUR PROCESS
(FAST & REGULATOR-READY)
Scope calL
Reference-Asset design; direct-ownership vs entitlement; reserve model (if applicable).
Policy stack build
Approval conditions, prudentials, governance, legal opinions.
Policy stack
Value-maintenance, ownership transfer, reserves/custody, redemptions, audits, disclosures.
Documentation
Whitepaper/RDS, monthly web disclosures, audit/attestation calendar.
Regulator interactions
Queries, conditions, Significant-Issuer uplift.
Go-live support
Operating playbooks, complaint SLAs, disclosure upkeep.
Why CRYPTOVERSE Legal
RWA-tokenisation
RWA-tokenisation specialists for the Gulf regulatory landscape.
Evidence-ready
Artefacts mapped clause-by-clause to the ARVA Rules and Compulsory Rulebooks.
Speed with substance
Compressed timelines without cutting compliance corners.
Ready to launch a compliant VA management proposition?
Book a Strategy CallFAQs
Yes—if legal title is validly established and follows token transfers; you must satisfy settlement/transfer-of-title requirements and address mismatches.
Reserves are required where the ARVA purports to maintain a stable value in respect of Reference Assets; otherwise focus on value-maintenance policy and redemption design.
Every six months for circulating ARVAs and Reserve Assets (if applicable) + annual financial audit; Senior Management attests after each audit.
You may not use “stablecoin” unless the ARVA references one RWA, you’re Licensed/approved, and you maintain Reserve Assets per Rule III.C; include the no-protection/guarantee statement.
AED 1,500,000 or 2% of the average market value of Reserve Assets (24-month lookback), whichever is higher.