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A. Interpretation

Fiat-Referenced Virtual Asset [FRVA] means a type of Virtual Asset that purports to maintain a stable value in relation to the value of one or more fiat currencies but does not have legal tender status in any jurisdiction. An FRVA is neither issued nor guaranteed by any jurisdiction and fulfils its functions only by use and acceptance within the community of users of the FRVA.
2. As stated in Rule I.B.3 of these FRVA Rules, the issuance of any FRVA that purports to maintain a stable value in relation to the value of AED shall not be approved under these FRVA Rules and shall remain under the sole and exclusive regulatory purview of the CBUAE.
FRVAs do not include Virtual Assets which are—
  a. representations of any equity claim;
  b. issued by central banks acting in their monetary authority capacity [e.g. central bank digital currencies [CBDCs]]; or
tokenised bank deposits used only for interbank settlement purposes.
Reference Currency means, in relation to an FRVA, a VARA-approved fiat currency—
  a. the value of which an FRVA purports to maintain a stable reference to;
  b. which is controlled by a central bank of any country[ies] or territory[ies] which are not subject to any sanctions in accordance with Federal AML-CFT Laws;
  c. which has the status of legal tender; and
which is required to be accepted within a given jurisdiction.
Reserve Assets means, for the purposes of these FRVA Rules, the pool of assets maintained in accordance with Rule III.B of these FRVA Rules and as approved by VARA. Reserve Assets are not Client Money or Client VAs, as defined in the Compliance and Risk Management Rulebook.