| VA Activity |
VA Activity |
| “Advisory Services” |
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means offering, providing or agreeing to provide a personal recommendation* to a client, either upon its request, or on the initiative of the Entity providing the recommendation, in respect of one or more actions or transactions relating to any Virtual Assets.
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*When providing a personal recommendation, the Entity providing the recommendation shall consider the following factors at a minimum in respect of each client—
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| [a] |
knowledge and experience in investing in Virtual Assets; |
| [b] |
investment objectives including, but not limited to, risk tolerance, time horizon and venues through which they can acquire Virtual Assets; and |
| [c] |
financial circumstances including, but not limited to, their ability to bear sudden and significant losses or proportion of their net worth invested in Virtual Assets. |
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| “Broker-Dealer Services” |
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means any of the following—
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| [a] |
arranging orders for the purchase and sale of Virtual Assets between two Entities; |
| [b] |
soliciting or accepting orders for Virtual Assets and accepting fiat currency, or other Virtual Assets, for such orders; |
| [c] |
facilitating the matching of transactions in Virtual Assets between buyers and sellers; |
| [d] |
entering into Virtual Asset transactions as a dealer on behalf of the Entity for its own account; |
| [e] |
making a market in Virtual Assets using client assets; or |
| [f] |
providing placement, distribution or other issuance* related services to clients issuing Virtual Assets.
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*As per Regulation II, any Entity in the Emirate that issues a Virtual Asset in the course of a business, must comply with the VA Issuance Rulebook, as may be amended from time to time.
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| “Custody Services” |
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means safekeeping Virtual Assets for or on behalf of another Entity and acting only on verified instructions from or on behalf of such Entity*.
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*All VASPs shall be subject to Rules regarding the storage and custody of clients’ Virtual Assets. Only VASPs which segregate each client’s assets in separate VA Wallets will qualify for a Custody Services Licence.
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| “Exchange Services” |
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means any of the following—
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| [a] |
conducting an exchange, trade or conversion between Virtual Assets and fiat currency; |
| [b] |
conducting an exchange, trade or conversion between one or more Virtual Assets; |
| [c] |
matching orders between buyers and sellers and conducting an exchange, trade or conversion between [i] Virtual Assets and fiat currency or [ii] one or more Virtual Assets; or |
| [d] |
maintaining an order book in furtherance of [a], [b] or [c] above. |
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| “Lending and Borrowing Services” |
means carrying out a contract under which a Virtual Asset shall be transferred or lent from one or more parties [the Lender[s]] to one or more other parties [the Borrower[s]] where the Borrower[s] shall commit to return the same, at the request of the Lender[s], at any time either during or at the end of the period agreed upon. |
| “VA Management and Investment Services” |
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means acting on behalf of an Entity as an agent, or fiduciary, or otherwise taking responsibility for the management, administration or disposition of that Entity’s Virtual Assets.
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Examples may include, but shall not be limited to—
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| [a] |
investment management services or otherwise managing Virtual Assets; and |
| [b] |
taking responsibility for the staking of Virtual Assets for the purposes of earning fees or other amounts paid to validators and/or node operators of a proof-of-stake Distributed Ledger Technology. |
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| “VA Transfer and Settlement Services” |
means the transmission or transfer, and/or settlement of Virtual Assets from one Entity to another Entity or from one Entity to another VA Wallet, address or location. |