| 1. | No Entity in the Emirate may carry out any Category 1 VA Issuance, unless it is authorised and Licensed by VARA for the VA issuance. |
| 2. | As stated in the Regulations, carrying out Category 1 VA Issuance is a VA Activity. In addition to compliance with this VA Issuance Rulebook, 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 Category 1 VA Issuance 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; and |
| | d. | Market Conduct Rulebook.
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| 3. | For the avoidance of doubt, all Rules in Rulebooks apply cumulatively in addition to all other requirements in the Regulations, Rules and Directive and as such, in the event of overlap, the higher standard of compliance must be met at all times. |
| 4. | Licensing process. All Entities seeking a Licence from VARA to carry out Category 1 VA Issuance shall adhere to the licensing process as prescribed by VARA from time to time when applying for such Licence. |
| 5. | FRVA Rules. All Entities seeking to carry out the issuance of an FRVA will, in addition to compliance with all other Regulations, Rules and Directives as communicated by VARA in its Licence, or otherwise from time to time, be required to comply with the FRVA Rules in Annex 27 of this VA Issuance Rulebook at all times. |
| 6. | ARVA Rules. All Entity seeking to carry out the issuance of an ARVA will, in addition to compliance with all other Regulations, Rules and Directives as communicated by VARA in its Licence, or otherwise from time to time, be required to comply with the ARVA Rules in Annex 2 of this VA Issuance Rulebook, at all times. |
| 7. | Revocation or Suspension. VARA may, in its sole and absolute discretion, revoke a Licence for Category 1 VA Issuance in the event of any of the following—
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| | a. | the Entity which has received the Licence has not issued the Virtual Asset within six (6) months after the approval has been granted; |
| | b. | the Entity which has received the Licence obtained the Licence by making false or misleading statements including, but not limited to, in the Whitepaper, during the licensing process in Rule I.D.4 above, or in any other communications with VARA or the public; |
| | c. | the Entity which has received the Licence no longer meets, or is in breach of, any of the conditions imposed by VARA in relation to the Licence; |
| | d. | infringement of any Regulation, Rule or Directive; |
| | e. | violation of any regulatory requirements applicable in other jurisdictions; |
| | f. | the Entity which has received the Licence is Insolvent, subject to Insolvency Proceedings or otherwise has been put under an orderly wind-down plan in accordance with applicable insolvency laws; |
| | g. | the Entity which has received the Licence has decided to stop its operations; |
| | h. | on any ground on which VARA might refuse to issue a Licence; |
| | i. | for Good Cause; or |
| | j. | other grounds determined by VARA in exercising its powers, performing its functions or fulfilling its objectives under the Dubai VA Law.
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| 8. | Entities shall immediately notify VARA of any of the situations referred to in Rule I.D.7 of this VA Issuance Rulebook.
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