| 1. | Only VASPs Licensed by VARA to carry out Custody Services may provide Collateral Wallet Services. |
| 2. | VASPs Licensed by VARA to carry out Custody Services may only provide Collateral Wallet Services if explicitly authorised to do so by VARA, with such authorisation being expressly stipulated in the VASP's Licence. |
| 3. | VASPs providing Collateral Wallet Services will be subject to licensing and/or supervision fees incremental to the fees for Custody Services in Schedule 2 of the Regulations, or other fees published by VARA, as amended from time to time, in order to be able to provide Collateral Wallet Services. |
| 4. | VASPs that are authorised to provide Collateral Wallet Services must comply with this Part V of the Custody Services Rulebook, at all times, when undertaking the regulated activity of providing Collateral Wallet Services. |
| 5. | Collateral Wallet Services are regarded by VARA as ancillary services to the Custody Services that a VASP provides. As such, all VASPs providing Collateral Wallet Services must comply with all other Rules relating to Custody Services throughout the provision of Collateral Wallet Services, including but not limited to the Client Virtual Assets Rules in Part V of the Compliance and Risk Management Rulebook, subject only to the explicit exceptions contained in this Part V of the Custody Services Rulebook. |
| 6. | In addition to VARA's powers in Part IX of the Regulations, VARA shall have the right to limit, suspend or revoke any authorisation granted to a VASP to provide Collateral Wallet Services, upon reasonable grounds VARA deems appropriate at any time.
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