B. Paid-Up Capital | Virtual Assets Regulatory Authority (VARA)

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Feb 07 2023 - Jun 01 2023
Jun 02 2023

B. Paid-Up Capital

1.

VASPs shall, at all times, hold and maintain paid-up capital in the following amounts [Paid-Up Capital]—

VA Activity	Paid-Up Capital Requirement
Advisory Services	AED 100,000.
Broker-Dealer Services	Broker-Dealer Services using a VASP Licensed by VARA to provide Custody Services or otherwise approved during the licensing process: the higher of [i] AED 400,000; or [ii] 15% of fixed annual overheads.
Broker-Dealer Services	In all other instances, the higher of [i] AED 600,000; or [ii] 25% of fixed annual overheads.
Custody Services	The higher of [i] AED 600,000; or [ii] 25% of fixed annual overheads.
Exchange Services	Exchange Services using a VASP Licensed by VARA to provide Custody Services or otherwise approved during the licensing process: the higher of [i] AED 800,000; or [ii] 15% of fixed annual overheads.
Exchange Services	In all other instances, the higher of [i] AED 1,500,000; or [ii] 25% of fixed annual overheads.
Lending and Borrowing Services	The higher of [i] AED 500,000; or [ii] 25% of fixed annual overheads.
VA Management and Investment Services	VA Management and Investment Services using a VASP Licensed by VARA to provide Custody Services or otherwise approved during the licensing process: the higher of [i] AED 280,000; or [ii] 15% of fixed annual overheads.
VA Management and Investment Services	In all other instances, the higher of [i] AED 500,000; or [ii] 25% of fixed annual overheads.
VA Transfer and Settlement Services	The higher of [i] AED 500,000; or [ii] 25% of fixed annual overheads.

2.	Where a VASP is Licensed by VARA to carry out more than one VA Activity, the VASP must hold the amount of Paid-Up Capital specified in Rule VI.B.1 of this Company Rulebook for each VA Activity for which the VASP is Licensed. In such instances, the VASP shall calculate the Paid-Up Capital required for each VA Activity using the fixed annual overheads for that VA Activity only, provided that in combination all Paid-Up Capital is mutually exclusive and collectively exhaustive such that the total fixed annual overheads of the VASP are accounted for in aggregate. VASPs must reconcile Paid-Up Capital on a monthly basis.
3.	Paid-Up Capital shall, at all times, be held and maintained in—
	a.	a trust account with a licensed bank in the UAE with VARA stated as the beneficiary;
	b.	a surety bond furnished by a surety company authorised to conduct business in the UAE, which shall have no end date and state VARA as a beneficiary; or
	c.	any other manner as may be specified by VARA upon granting a Licence.