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C. Virtual Assets Required to be Registered with VARA

Effective from Feb 07 2023 - Sep 18 2023
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1. Permitted VAs. The following Virtual Assets do not require approval from VARA prior to being issued by an Entity in the Emirate, however remain subject to the registration requirement in Rule I.C.2 of this VA Issuance Rulebook [Permitted VAs]—
  a. Free & Non-Transferable Virtual Assets;
  b. Non-Redeemable & Non-Transferable Virtual Assets; and
  c. Redeemable Closed-Loop & Non-Transferable Virtual Assets.
2. The Issuer of a Permitted VA must—
  a. register the Whitepaper of the Virtual Asset with VARA at least seven [7] Working Days before its publication, accompanied by a declaration signed by the Issuer in the form set out in Schedule 2 which must be sent to VARA using the method prescribed by VARA from time to time; and
  b. comply with all requirements in Parts IIIV of this VA Issuance Rulebook at all times.
3. If any change is made to a Permitted VA resulting in it no longer qualifying as a Permitted VA, the Issuer must obtain approval from VARA, in accordance with Rule I.D.1 of this VA Issuance Rulebook, prior to such change being made.
4. Exempt Entities. Exempt Entities may sell Non-Redeemable & Non-Transferable Virtual Assets and/or Redeemable Closed-Loop & Non-Transferable Virtual Assets in exchange for fiat currency or other Virtual Assets [with such definitions being amended and interpreted accordingly in respect of Exempt Entities] without gaining prior approval from VARA, provided that—
  a. the Exempt Entity complies with all other Rules in this VA Issuance Rulebook, including the registration and declaration requirements in Rule I.C.1 and I.C.2 above and Parts IIIV of this VA Issuance Rulebook at all times;
  b. all transactions are handled by VASPs Licensed by VARA; and
  c. VARA shall, in any event, have the sole and absolute discretion to decide whether an Entity is an Exempt Entity for the purposes of the Regulations and this VA Issuance Rulebook.
5. Compliance requirements. All Virtual Assets issued in accordance with this Rule I.C of this VA Issuance Rulebook shall remain subject to VARA’s supervision, examination and enforcement at all times in accordance with Part V of this VA Issuance Rulebook.
6. In respect of any Virtual Asset which has already been issued or in the process of being issued, VARA may require an Issuer to suspend issuing the Virtual Asset, or issuing further Virtual Assets, if VARA believes a Virtual Asset, how it is being issued or the Issuer does not comply with this VA Issuance Rulebook in any way. VARA may also impose additional conditions and/or take further enforcement action within its power including but not limited to imposing fines or penalties.