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Schedule 4 – Definitions

Effective from Jun 05 2023 - Sep 18 2023
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Term Definition
“Accepted Practice” means any behaviour that does not amount to a Market Offence as a result of being specified as an accepted practice either under any of Regulation VIII.B-H or by VARA acting in its sole and absolute discretion under Regulation VIII.A.
“AML/CFT” means anti-money laundering, combating the financing of terrorism, counter proliferation financing and financial sanctions compliance.
“Anonymity-Enhanced Cryptocurrencies” means a type of Virtual Asset which prevents the tracing of transactions or record of ownership through distributed public ledgers and for which the VASP has no mitigating technologies or mechanisms to allow traceability or identification of ownership.
“CBUAE” means the Central Bank of the United Arab Emirates.
“CDD” has the meaning ascribed to it in the Compliance and Risk Management Rulebook.
“Company Rulebook” means the Company Rulebook issued by VARA pursuant to these Regulations, as may be amended from time to time.
“Compliance and Risk Management Rulebook” means the Compliance and Risk Management Rulebook issued by VARA pursuant to these Regulations, as may be amended from time to time.
“Directive” means a directive issued by VARA under these Regulations which shall have binding effect and shall, if required, attach a penalty determined and imposed by VARA at its sole discretion.
“Distributed Ledger Technology” or “DLT” has the meaning ascribed to the term “Distributed Ledger Technology” in the Dubai VA Law.
“Dubai VA Law” means Law No. [4] of 2022 Regulating Virtual Assets in the Emirate of Dubai, as may be amended from time to time.
“DWTCA” means the Dubai World Trade Centre Authority.
“Emirate” means all zones across the Emirate of Dubai, including Special Development Zones and Free Zones but excluding the Dubai International Financial Centre.
“Entity” means any legal entity or individual.
“Exempt Entity”
means—
[a] UAE Government Entities; and
[b] all public, non-profit, not-for-profit and charitable Entities of an UAE Government Entity.
“FATF” means the Financial Action Task Force.
“Federal AML-CFT Laws”
means all UAE federal government legislation relating to AML/CFT, the financing of unlawful organisations or sanctions non-compliance as may be in force from time to time, including all executive regulations, cabinet resolutions or cabinet decisions relating to the same, as may be amended from time to time, including but not limited to—
[a] Cabinet Resolution No. [24] of 2022 Amending certain Provisions of Cabinet Resolution No. [10] of 2019 Issuing the Executive Regulations of Federal Decree-Law No. [20] of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations;
[b] Cabinet Resolution No. [10] of 2019 Issuing the Executive Regulations of Federal Decree-Law No. [20] of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations;
[c] Federal Decree-Law No. [26] of 2021 Amending Some Provisions of Federal Decree-Law No. [20] of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations;
[d] Federal Decree-Law No. [20] of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations and its executive regulations, as may be amended from time to time; and
[e] Cabinet Decision No. [74] of 2020 Regarding Terrorism Lists Regulation and Implementation of UN Security Council Resolutions on the Suppression and Combating of Terrorism, Terrorist Financing, Countering the Proliferation of Weapons of Mass Destruction and its Financing and Relevant Resolutions.
“Good Cause” means, in VARA’s sole and absolute discretion, where an Entity has defaulted or is likely to default in performing its obligations or financial engagements, or engages in unlawful, dishonest, wrongful or inequitable conduct, or practices that may cause harm to the public.
“Guidance” means any Guidance issued by VARA under these Regulations which is indicative and does not have binding effect.
“Inside Information” has the meaning ascribed to it in Regulation VIII.B.1.
“Insider Dealing” has the meaning ascribed to it in Regulation VIII.C.1.
“Insolvency Proceedings”
means any legal proceedings or other procedure taken in relation to—
[a] the suspension of payments, a moratorium of any indebtedness, winding up, receivership, bankruptcy, dissolution, administration or reorganisation [by way of voluntary arrangement, scheme of arrangement or otherwise];
[b] the appointment of a liquidator, receiver, administrator, compulsory manager, trustee or similar officer in respect of an Entity and/or its assets;
[c] enforcement of any security over any asset of an Entity; or
[d] any analogous procedure or step is taken in any jurisdiction.
Except that, the above shall not apply to any winding up petition which is frivolous or vexatious and is discharged or stayed or dismissed with fourteen [14] calendar days of commencement.
“Insolvent”
means—
[a] the Entity—
 
  a. is unable to pay debts as they fall due;
  b. is deemed to, or is declared to, be unable to pay its debts under applicable law;
  c. suspends or threatens to suspend making payments on any of its debts; or
  d. by reason of actual or anticipated financial difficulties, commences negotiations with one or more creditors with a view to rescheduling its indebtedness;
 
[b] the value of the assets of the Entity is less than its liabilities taking into account contingent and prospective liabilities; or
[c] a moratorium is declared in respect of the indebtedness of an Entity.
“Issuer” means the Entity responsible for the issuance of a Virtual Asset.
“Licence” means a licence granted by VARA to an Entity under which VARA explicitly authorises such Entity to carry out one or more VA Activity[ies] in the Emirate.
“Licensed” means having a valid Licence.
“Market Conduct Rulebook” means the Market Conduct Rulebook issued by VARA pursuant to these Regulations, as may be amended from time to time.
“Market Manipulation” has the meaning ascribed to it in Regulation VIII.H.1.
“Market Offences” has the meaning ascribed to it in Regulation VIII.A.1.
“Market Sounding” has the meaning ascribed to it in Regulation VIII.G.1.
“Professional Exemption” has the meaning ascribed to it in Regulation IV.A.5.
“Regulations” means these Virtual Assets and Related Activities Regulations 2023, as may be amended from time to time.
“Responsible Individuals” has the meaning ascribed to it in the Company Rulebook.
“Rule” means a rule issued by VARA under these Regulations which have binding effect.
“Rulebook” means a rulebook issued by VARA containing Rules and/or Guidance, as may be amended from time to time.
“Supervisory Authority” has the meaning ascribed to it in the Federal Decree-Law No. [20] of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations.
“Technology and Information Rulebook” means the Technology and Information Rulebook issued by VARA pursuant to these Regulations, as may be amended from time to time.
“UAE” means the United Arab Emirates.
“UAE-CBDC” means any digital currency issued by the CBUAE.
“UAE Government” means the federal government of the United Arab Emirates and the government of each emirate.
“UAE FIU” means the UAE Financial Intelligence Unit.
“Ultimate Beneficial Owner” or “UBO” has the meaning ascribed to it in the Company Rulebook.
“Unlawful Disclosure” has the meaning ascribed to it in Regulation VIII.D.1.
“VA Activity” means the activities listed in Schedule 1 of these Regulations, as may be amended from time to time.
“VA Issuance Rulebook” means the Virtual Asset Issuance Rulebook issued by VARA pursuant to these Regulations, as may be amended from time to time.
“VARA” means the Dubai Virtual Assets Regulatory Authority.
“VASP” means an Entity Licensed by VARA to carry out VA Activity[ies] in the Emirate.
“Virtual Asset” or “VA” has the meaning ascribed to it in the Dubai VA Law.
“VA Wallet” has the meaning ascribed to the term “Virtual Asset Wallet” in the Dubai VA Law.
“Working Day” means any day which is not a weekend or public holiday in the Emirate.