Virtual Assets Issuance (Category 1) — FRVA Issuance under VARA
Design, licence, and run a fully backed, VARA-approved FRVA—complete with par-value redemption, monthly reserve attestations, and whitepaper/RDS that withstand scrutiny.
We advise FRVA issuers end-to-end: licence, prudentials, Reserve-Asset governance, redemption operations, disclosures, audits, and marketing compliance.
WHAT “CRYPTO ISSUANCE (CATEGORY 1) – FRVA” COVERS
Scope
FRVAs are Virtual Assets that purport to maintain a stable value relative to one or more fiat currencies (or other FRVAs), but are not legal tender anywhere. Issuing an FRVA is a Category 1 VA Issuance, therefore a licensed VA Activity.
Cumulative rulebooks
FRVA issuers must comply with the Company, Compliance & Risk Management, Technology & Information, Market Conduct, VA Issuance Rulebook, and the FRVA Rules.
AED peg prohibition
AED-referenced FRVAs are not approvable by VARA and fall under the exclusive remit of the CBUAE.
Use in the VA ecosystem
FRVAs approved under VARA may be used only for VA-ecosystem transactions; they are not a means of payment in the UAE.
SERVICES YOU CAN OFFER UNDER THIS LICENCE
Issue and redeem at par
With enforceable 1:1 redemption rights for eligible holders, and T+1 Working Day completion of redemptions (no fees).
Maintain 100% reserves
Reserve Assets must equal or exceed circulating supply at all times; composition restricted to cash/cash-equivalents and high-quality liquid instruments in the Reference Currency, with prudent custody and access controls.
Monthly independent audits & website disclosures
Monthly, independent attestations covering circulating supply and reserve composition/value, with statements confirming 100% backing; disclosures posted on your website.
Whitepaper & RDS regime
A compliant Whitepaper and Risk Disclosure Statement before any public availability/marketing, maintained and updated with version history for ≥8 years.
Significant FRVA Issuer (if designated)
Subject to additional corporate governance, prudential, audit, and reporting conditions at VARA’s discretion.
COMPLIANCE GUARDRAILS THAT KEEP YOU OUT OF TROUBLE
|
Stable backing mechanics. |
Increases/decreases in circulating supply must be mirrored by the Reserve Assets; changes must be managed to avoid adverse market impact. |
|
Reserve composition & custody. |
Reserves held in-currency with qualified institutions; segregated, unencumbered, no rehypothecation, legally remote from the issuer’s estate; prompt convertibility for redemptions; VARA may require priority access arrangements. |
|
Redemptions |
Par-value redemption within 1 Working Day (or 1 Working Day after resolution of market disruptions), no fees, documented procedures. |
|
Audits & reporting. |
Monthly independent audits + Senior Management attestation to VARA. |
|
Marketing rules |
No “stable value” claims unless you are licensed and fully compliant; clear statements that holders have par-redemption rights (and whether directly enforceable), and that FRVAs are not covered by investor-protection/deposit-guarantee schemes. |
|
Prudentials |
Paid-Up Capital = AED 1,500,000 + 2% of available supply (and VARA may scale prudentials for Significant Issuers). |
|
Whitepaper content (extra for FRVA) |
Reference Currency, creation/redemption policy, Reserve-Asset types/valuation/custody, redemption procedures, and risk management. |
What CRYPTOVERSE Legal delivers
Licensing & approvals
Category-1 licence dossier, Reference-Currency analysis, AED-peg exclusions, Significant-Issuer readiness.
Reserve-Asset governance
Policy for composition, custody, diversification, access/convertibility, conflict management, and legal remoteness; custodian agreements with VARA-priority access mechanics.
Redemption operations
End-to-end par-redemption SOPs, disruption fallbacks, MI dashboards, exception logs.
Whitepaper & RDS
Drafting and controls for FRVA-specific disclosures; versioning and eight-year archival.
Audit & disclosure cadence
Monthly independent audits, management attestations, and public website disclosures.
Marketing compliance
Copy that meets FRVA marketing constraints (no over-promises; mandatory statements on redemption rights and lack of protection schemes).
OUR PROCESS (FAST & REGULATOR-READY)
Scope call
Reference-currency, use-cases (VA-ecosystem), custody & redemption architecture
Policy stack build
Artefacts list, prudentials (Paid-Up Capital, NLA/Reserves as applicable), board/roles, audit cadence
Policy stack
Reserve-Assets, redemptions, conflicts, disclosures, audits, market-conduct.
Documentation
Whitepaper + RDS + website disclosures; custodian contracts; redemption & disruption SOPs
Regulator interactions
Queries, conditions, Significant-Issuer obligations.
Go-live support
Monthly attestations, disclosure updates, audit/board calendars.
Why CRYPTOVERSE Legal
Stablecoin specialists
Stablecoin specialists for the Gulf regulatory landscape (VARA/CBUAE demarcation, prudentials, custody, redemptions).
Evidence-ready
Evidence-ready artefacts mapped clause-by-clause to FRVA 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
No. AED-referenced “stablecoins” are not approvable under VARA’s FRVA Rules and are under CBUAE remit.
Within 1 Working Day (or 1 Working Day after a market-disruption resolves). No fees.
Cash/cash-equivalents and very short-dated, high-quality liquid instruments in the Reference Currency, with strict custody, segregation and access.
Website disclosure of supply in circulation and reserve composition/value, backed by independent audit and a statement confirming 100% backing.
AED 1,500,000 + 2% of available supply (and potentially higher, if designated Significant FRVA Issuer).