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C. Net Liquid Assets

1. VASPs shall at all times hold and maintain sufficient current liquid assets such that their surplus over current liabilities is worth at least 1.2 times their monthly operating expenses [Net Liquid Assets] as represented by the following calculation—
 
Net Liquid Assets ≥ 1.2 x monthly operating expenses
 
2. When calculating their Net Liquid Assets under Rule VI.C.1 of this Company Rulebook, VASPs must include such portion of their Operational Exposure to Virtual Assets [as agreed with VARA as a condition of their Licence] in their current liabilities, for the purposes of calculating their current liabilities.
3. Net Liquid Assets shall be reconciled on a daily basis and reported to VARA monthly.
4. Net Liquid Assets may be maintained in the following assets only—
 
  a. cash and cash equivalents, as defined in internationally recognised accounting standards; and
  b. Fiat-Referenced Virtual Assets referencing USD [or AED as approved by VARA] and where such Fiat-Referenced Virtual Assets, in all events, are backed by cash or cash equivalent [as defined in internationally recognised accounting standards] reserves denominated in the fiat currency referenced of not less than the market value of the Fiat-Referenced Virtual Asset in public circulation, or not yet redeemed.