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C. VA issuance categories and prior requirements

1. VA issuances in the Emirate are categorised, along with the applicable requirement prior to the Virtual Asset being issued, as follows—
 
Category Applicable types of VA issuances Prior requirement
Category 1
issuance of—
[i] Fiat-Referenced Virtual Assets [FRVAs], defined as types of Virtual Assets that purport to maintain a stable value in relation to the value of one or more fiat currencies, but do not have legal tender status in any jurisdiction, as more fully defined in the FRVA Rules. For the avoidance of doubt, and as stated in Rule B.3I.B.3 of the FRVA Rules, the issuance of any FRVA that purports to maintain a stable value in relation to the value of AED shall not be approved under this VA Issuance Rulebook and the FRVA Rules and shall remain under the sole and exclusive regulatory purview of the CBUAE; or
[ii] other Virtual Assets as may be determined by VARA
from time to time.
VARA Licence
Category 2
All issuances which do not constitute a Category 1 VA issuance,
and—
[i] by or involving Designated Non-Financial
Businesses and Professions [DNFBPs]; or
[ii] which satisfy any of the following—
[a] a single transaction exceeding AED 40,000, or the equivalent amount in another fiat currency or Virtual Assets;
[b] offered to one hundred and fifty [150] Entities or more, where such Entities are acting on their own account; or
[c] over a period of twelve [12] months, starting with the beginning of the issuance, the total consideration, direct or indirect benefit, accrued to the Issuer exceeds AED 2,000,000, or the equivalent amount in another fiat currency or Virtual Assets.
Approval of the Issuer

 
2. When determining the category of a VA issuance, VARA will consider all factors it deems appropriate in respect of such issuance, including the nature of all Virtual Assets or types of Virtual Assets involved.
3. If any change proposed to be made to a Virtual Asset may result in its issuance no longer qualifying under the original categorisation in Rule I.C.1 of this VA Issuance Rulebook, the Issuer must comply with all requirements of the category under which the Virtual Asset will fall after such change is made. The Issuer must ensure all such future requirements are met prior to any proposed changes to the Virtual Asset taking effect which, for the avoidance of doubt, shall include the Issuer obtaining a Licence or prior approval from VARA where necessary.