1.
| As stated in Rule I.C.1 of the VA Issuance Rulebook, the issuance of an FRVA is a Category 1 VA Issuance and as such is a VA Activity. In addition to compliance with these FRVA Rules, and all other Regulations, Rules and Directives as communicated by VARA in its Licence or otherwise from time to time, all Entities seeking to carry out the issuance of an FRVA will be required to comply with the following Rulebooks—
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| | a. | Company Rulebook; |
| | b. | Compliance and Risk Management Rulebook; |
| | c. | Technology and Information Rulebook; |
| | d. | Market Conduct Rulebook; and |
| | e. | VA Issuance Rulebook.
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| 2. | Approval of each FVRA. All VASPs Licensed by VARA to carry out Category 1 VA Issuance must obtain approval from VARA prior to issuing each Fiat-Referenced Virtual Asset. |
3.
| Approval conditions. VARA may, in its sole and absolute discretion, impose conditions on any approvals granted for the issuance of an FRVA by a VASP including, but not limited to—
|
| | a.
| segregation of the VASP's business or operations in relation to VA issuances and any other VA Activities (or other businesses and activities, if applicable) by implementing and strictly enforcing policies and procedures; |
| | b.
| provision of further information to demonstrate the VASP’s ability to comply with any Regulation, Rule or Directive; and/or |
| | c.
| any additions or modifications to requirements set out in any Regulation, Rule and/or Directive.
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4.
| AED as Reference Currency. In addition to Regulation III.A.4, the issuance of any Virtual Asset that purports to maintain a stable value in relation to the value of AED shall remain under the sole and exclusive regulatory purview of the CBUAE. Entities seeking to issue any such Virtual Asset in the Emirate must comply with any applicable CBUAE regulation. |
5.
| Use of FRVAs in VA ecosystem only. FRVAs issued under these FRVA Rules may only be used for the purchase and/or sale of assets in the VA ecosystem and may not be used as a means of payment for goods or services within the UAE. |
| 6. | Currencies of sanctioned countries or territories. VASPs may not have as a Reference Currency any currency issued by any country(ies) or territory(ies) which are subject to sanctions under Federal AML-CFT Laws.
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