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D. Virtual Assets Subject to VARA Approval

Effective from Feb 07 2023 - Sep 18 2023
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1. General requirement to obtain approval. In addition to the general requirement in Rule I.A.1 of this VA Issuance Rulebook, and subject to Rule I.C of this VA Issuance Rulebook, all Virtual Assets must be approved by VARA prior to being issued by an Entity in the Emirate.
2. Approval process. An Entity seeking to obtain approval from VARA to issue a Virtual Asset under Rule I.D.1 of this VA Issuance Rulebook will be required to provide all relevant information as requested by VARA in the approval process, which may include but is 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 and insider dealing;
  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 any proceeds or other consideration [whether monetary or value in kind] received from issuing the Virtual Asset will be used;
  h. who will receive any proceeds or other consideration and what proportion they will receive;
  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 for any approval. 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.D.1 of this VA Issuance Rulebook must seek approval from VARA prior to any material change to any Virtual Asset which has been approved by VARA.