Schedule 1 – Fines
| 1. | In accordance with Regulation IX.C of the Regulations and Marketing Regulation II.A.2 above, VARA has the sole and absolute discretion to issue fines against any Entity and determine the amounts thereof. |
| 2. | The following table sets out the nature and amounts of fines that VARA may impose on any Entity for violations of these Marketing Regulations, but which shall be determined by VARA in accordance with applicable local and federal laws and by reference to its assessment of all relevant factors, including those set out in Regulation IX.C. Fines issued by VARA are exclusive of any fines, penalties or damages which may be imposed by other competent authorities including competent courts. |
| 3. | VARA may amend the grounds for issuance and/or amount of the fines set out in this Schedule 1, including adding new categories of fines, by amendment to these Marketing Regulations or by Directive at any time. |
No. | Nature of Violation / Ground(s) for Issuance of Fine | Fine Amount per Violation (AED) |
1. | Violation of Marketing Regulation I.B.3 regarding the Marketing of or relating to VA Activities. | Up to 10,000,000 |
2. | Violation of Marketing Regulation I.C.2 regarding the general requirements applicable to all Marketing. | Up to 10,000,000 |
3. | Violation of Marketing Regulation I.C.3 regarding additional requirements applicable to the Marketing of or relating to any Virtual Asset. | Up to 10,000,000 |
4. | Violation of Marketing Regulation I.C.5 regarding Marketing conducted by a third party. | Up to 2,000,000 |
5. | Violation of Marketing Regulation I.D.1 regarding the journalistic exemption. | Up to 2,000,000 |
6. | Violation of Marketing Regulation I.D.2 regarding the educational exemption. | Up to 2,000,000 |
7. | Violation of Marketing Regulation I.E.1 regarding the facilitation of Marketing by platforms and channels. | Up to 10,000,000 |
8. | Violation of Regulation I.E.2 regarding record keeping by platforms and channels. | Up to 500,000 |
9. | Violation of Marketing Regulation I.E.3 or I.E.4 regarding the operation of application stores and/or platforms. | Up to 2,000,000 |
10. | Violation of Marketing Regulation I.F.1 regarding Marketing at physical events held in the Emirate. | Up to 10,000,000 |
11. | Violation of Marketing Regulation I.F.2 regarding the organisation, hosting, promotion and management of physical events in the Emirate. | Up to 10,000,000 |
12. | Violation of Marketing Regulation I.G.1 regarding Marketing from the Emirate in other jurisdictions. | Up to 10,000,000 |
13. | Violation of any provision of these Marketing Regulations not specifically listed above. | Up to 10,000,000 |
14. | Failure to comply with any remedial, enforcement or other actions imposed under these Marketing Regulations. | Up to 10,000,000 |
15. | Repeat violation within one (1) year from the date of the original violation. | The amount of the applicable fine as indicated in this Schedule 1 will be doubled. |
16. | Non-payment of fine within any timeframe specified by VARA. | Further fine to be issued, the amount of which shall accrue from when a fine is due at 1% per month (rounded up to the nearest full month) for any unpaid amounts of the fine on a compounding basis, until the initial fine and the further fine are paid in full. |
| 4. | Notwithstanding No. 16 in the above table of this Schedule 1, if a fine issued pursuant to these Marketing Regulations is not paid by an Entity within the timeframe specified by VARA, VARA may, at its sole and absolute discretion, take any further action necessary to recover payment including, but not limited to, taking further enforcement action(s) and/or referring the matter to any law enforcement agencies and competent courts. |