| 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; |
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b. |
the VASP’s Licence and applicable licensing conditions; and |
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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—
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i. |
maintaining a cash holding of AED 500,000 supported by documentary proof of funds [e.g. bank statements] that illustrate relevant assets have remained, and will remain, liquid for a reasonable period of time and which shall be checked periodically; and |
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ii. |
has 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; 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 a cash holding of AED 500,000 supported by documentary proof of funds [e.g. bank statements] that illustrate relevant assets have remained, and will remain, liquid for a reasonable period of time and which shall be checked periodically; and |
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ii. |
whose directors have 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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| 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 CBUAE, the UAE Securities and Commodities Authority, the Dubai Financial Services Authority and the Financial Services Regulatory Authority of the Abu Dhabi Global Market]; |
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b. |
any VASP; |
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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; |
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d. |
any institution which performs the functions of a central bank; or |
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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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