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E. Category 2 VA issuance

1. No Entity in the Emirate may carry out a Category 2 VA issuance, unless it has obtained prior approval from VARA to carry out such VA issuance.
2. Approval process. An Entity seeking to obtain approval from VARA to issue a Virtual Asset under Rule I.E.1 of this VA Issuance Rulebook will be required to provide all relevant information as requested by VARA in the approval process, including but not limited to the following—
 
  a. the purpose and/or use of the Virtual Asset;
  b. the nature of the business and/or activities for which the Virtual Asset will be used;
  c. the Whitepaper;
  d. the identity, full details and, if applicable, ownership of the Issuer, including a description of its experience and whether it, or its relevant individuals, have been the subject of any claims in the past ten [10] years involving dishonesty, fraud, financial crime or an offence under laws relating to companies, banking, insolvency, money laundering, insider trading or terrorism financing;
  e. the financing of the Issuer’s business [including financial statements, if any];
  f. whether issuing the Virtual Asset will be the basis for funding any business or other venture;
  g. how will any proceeds or other consideration [whether monetary or value in kind] received from issuing the Virtual Asset be used;
  h. who will receive any proceeds or other consideration, what proportion they will receive and how much of that will be directly attributable for the facilitation of the purpose ascribed in Rule I.E.2.g of this VA Issuance Rulebook;
  i. the risks related to the business and/or activities in relation to which the Virtual Asset will be issued; and
  j. the governance structure, or quality control plan for the business and/or activities, and the Entities involved.
 
3. Applicable Rules. On receiving approval by VARA, an Issuer will be required to comply with all Rules or requirements that VARA may impose on the Issuer as a condition and ongoing requirement of any approval. As a minimum standard, Issuers will be required to comply with all Rules in this VA Issuance Rulebook, however, VARA may impose Rules in addition to, or disapply any of, the Rules set out in this VA Issuance Rulebook depending on the considerations which it deems relevant to the nature of the Virtual Asset being issued and/or the Issuer.
4. An Issuer who has obtained approval from VARA under Rule I.E.1 of this VA Issuance Rulebook must re-seek approval from VARA prior to making any material change to any Virtual Asset which it has issued following approval from VARA.