Real Estate Developers: Why VARA Category 2 Matters

If you're a real estate developer exploring fractional sales or blockchain integration, tokenization under VARA’s Category 2 may be a game-changer — but only if done right.

Virtual Assets Regulatory Authority [VARA] defines Category 2 issuance as tokens that represent:

✅ Ownership in a real asset

✅ Rights to cashflow, dividends, or yield

✅ Tradable units backed by underlying value

For developers, this could apply to:

Yield-generating projects

Co-investment models

Digital SPV structures

BUT — this doesn't eliminate the need for DLD GROUP or Real Estate Regulatory Authority (RERA) approvals. Real estate tokenization often requires dual-regulatory oversight in the UAE.

⚠️ Selling tokenized real estate without a licensed and registered structure can expose you to penalties under both Virtual Assets Regulatory Authority [VARA] and real estate laws.

📌 This content is educational only. Licensing is case-specific.

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