The Dubai Virtual Assets Regulatory Authority (VARA) has announced significant refinements to its Virtual Asset (VA) Issuance Rulebook:
🚀 Key Points:
➡️ Stablecoin Issuance: A new license requirement has been introduced for non-AED backed Fiat-Referenced Virtual Assets (FRVAs). Any FRVA linked to the AED’s value remains under the exclusive jurisdiction of the Central Bank of The UAE.
➡️ Licensing & Approval:
🗎 Category 1 License: Necessary for the issuance of Fiat-Referenced Virtual Assets (FRVAs) without legal tender status in any jurisdiction.
🗎 Category 2 Approval: For VA issuances which are not Category 1 and have specific criteria including type of issuing entity, transaction values and number of entities to which the VA is offered.
Entities must secure VARA’s explicit authorization or approval prior to initiating any Category 1 or 2 VA issuances.
➡️ Exemptions: Under stringent conditions, certain entities might qualify for exemptions, allowing VA issuance without VARA’s prior approval. The final decision rests with VARA.
➡️ AML/CFT & #Marketing#Regulations: Issuers are mandated to consistently adhere to Federal AML-CFT laws and other relevant #AML / #CFT regulations. This includes implementing robust AML/CFT controls, conducting risk assessments, and being responsive to emerging AML/CFT challenges related to new virtual assets and technologies. Additionally, issuers are bound by Administrative Order No. [01] of 2022 and No. [02] of 2022 concerning the regulation of VA-related marketing and promotions.
➡️ Whitepaper & Risk Disclosure: Issuers must present a comprehensive whitepaper detailing key aspects of the Virtual Asset being issued. An up-to-date Risk Disclosure Statement, detailing thoroughly all associated risks, is also a prerequisite.
➡️ Disclaimer: A clear statement now reiterates that any licence or approval by VARA is not an endorsement of the Issuer or the Virtual Asset being issued. Moreover, barring specific communications, VARA does not vouch for or provide any warranties related to any Issuer or Virtual Asset outside the Emirate of Dubai, UAE.
👏👀 VARA’s whitepaper guidance serves as an invaluable reference point for the virtual asset industry, irrespective of their operational jurisdiction.
🔗 All entities involved in the Virtual Assets domain are advised to thoroughly review these changes and ensure full compliance to foster a transparent and secure VA landscape in Dubai. Full details can be viewed on the VARA web site here: https://rulebooks.vara.ae/node/293