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C Category 2 VA Issuance (Example)

ORC FZE is an Entity incorporated in a free zone within the Emirate. ORC FZE is developing an advanced oracle solution which allows applications built on major public blockchains to obtain price feeds and other data from off-chain sources. Users of the oracle software that ORC FZE is developing will be able to interact with the oracle software by sending a Virtual Asset called ORC to pay for requests and receive data from the oracle. ORC will be available for purchasing on multiple venues and is freely transferable to any compatible VA Wallet.
 
Key considerations: ORC FZE is the Issuer of the ORC Virtual Asset as it is the Entity that will create and maintain it for the purpose of its oracle solution. ORC FZE will determine the features of ORC as well as being responsible for the rights and/or obligations that the token represents.
 
The issuance of ORC would fall within Category 2 under the VA Issuance Rulebook for the following reasons:
 
 
-it does not constitute a Category 1 VA Issuance because the ORC Virtual Asset is neither a Fiat-Referenced Virtual Asset nor an Asset-Referenced Virtual Asset. This is because ORC does not reference any other asset and exists in digital form only; and
-it is not an Exempt VA because the ORC Virtual Asset is neither a Non-Transferable Virtual Asset nor a Redeemable Closed-Loop Virtual Asset. This is because ORC is freely transferable.
 
As a result, ORC FZE does not need VARA's prior approval before issuing ORC, however in order to comply with the VA Issuance Rulebook, ORC FZE must ensure that all placing and distribution of ORC is carried out through or by a Licensed Distributor.