| 1. | General provision. VASPs shall only carry out a VA Activity, or attempt to carry out a VA Activity, in relation to the classifications of investors permitted by VARA, subject at all times to all restrictions imposed by VARA in any of the following—
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| | a. | Regulations, Rules or Directives as amended from time to time; |
| | b. | the VASP’s Licence and applicable licensing conditions; and |
| | c. | further conditions imposed by VARA from time to time.
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| 2. | Retail Investor. A Retail Investor means an Entity that is not an Institutional Investor or a Qualified Investor. |
| 3. | Qualified Investor. A Qualified Investor means—
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| | a. | an individual that has relevant knowledge in respect of Virtual Assets, or complex structured products, for the nature of the VA Activities to be provided to the individual (the manner of demonstration of which, shall be defined by the VASP prior to offering any products or services and shall be demonstrated to VARA on request) and such individual—
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| | | i. | maintains net assets (comprising fiat currency, financial instruments, Virtual Assets and/or equity in tangible real estate assets, or any combination thereof) of at least AED 3,500,000 in equivalent value, supported by documentary proof of funds (e.g. account statements) that illustrate the relevant assets have remained, and will remain, liquid for a reasonable period of time and which shall be checked periodically, provided that—
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| | | | 1. | the following assets shall be excluded from the calculation from an individual's net assets—
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| | | | | i. | the value of property that is the individual's primary residence, including any equity held by the individual net of any obligation against that residence; |
| | | | | ii. | any rights of the individual under a qualifying contract of insurance; and |
| | | | | iii. | any benefits (in the form of pensions or otherwise), which are payable on the termination of the individual's service, or on death or retirement, and to which the individual or the individual's dependents are, or may be, entitled; and
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| | | | 2. | for the calculation of net assets, only 50% of the market value of Virtual Assets belonging to the individual may be included; or
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| | | ii. | has an annual income of AED 700,000 or more; or
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| | b. | a legal entity validly incorporated in the jurisdiction in which it is located—
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| | | i. | maintaining net assets (comprising fiat currency, financial instruments, Virtual Assets and/or equity in tangible real estate assets, or any combination thereof) of at least AED 3,500,000 in equivalent value supported by documentary proof of funds (e.g. account statements) that illustrate the relevant assets have remained, and will remain, liquid for a reasonable period of time and which shall be checked periodically, provided that, for the calculation of net assets, only 50% of the market value of Virtual Assets belonging to the legal entity may be included; and |
| | | ii. | whose directors have relevant knowledge in respect of Virtual Assets for the nature of the VA Activities to be provided to the legal entity, the manner of demonstration of which shall be defined by the VASP prior to offering any products or services and shall be demonstrated to VARA on request.
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| 4. | Institutional Investor. An Institutional Investor means—
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| | a. | any Entity regulated by a competent financial services regulator in the jurisdiction in which it is located (including but not limited to the CBUAE, the UAE Securities and Commodities Authority, the Dubai Financial Services Authority and the Financial Services Regulatory Authority of the Abu Dhabi Global Market); |
| | b. | any VASP; |
| | c. | any government with relevant knowledge in respect of Virtual Assets for the nature of the VA Activities to be provided, the manner of demonstration of which shall be defined by the VASP prior to offering any products or services and shall be demonstrated to VARA on request; |
| | d. | any institution which performs the functions of a central bank; or |
| | e. | any multilateral agency with relevant knowledge in respect of Virtual Assets for the nature of the VA Activities to be provided, the manner of demonstration of which shall be defined by the VASP prior to offering any products or services and shall be demonstrated to VARA on request.
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