What are VA Activities? & Who can carry out VA Activities in Dubai? | AML UAE

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The Virtual Assets and Related Activities Regulations 2023 issued by the Virtual Assets Regulatory Authority (#VARA) govern the Virtual Assets landscape in Dubai.

Schedule 1 of the Regulations lists the virtual assets-related activities subject to strict regulations and supervision in Dubai by VARA.

Virtual asset-related activities contained in Schedule 1 of the Regulations are as follows:

1) Virtual Assets Advisory Services: It involves services related to the offering, providing or agreeing to provide a personal recommendation to a client regarding one or more transactions related to virtual assets.

2) Broker-Dealer Services: It involves the following services:
• arranging orders for the purchase and sale of Virtual assets between two entities,
• soliciting or accepting orders for Virtual assets and accepting fiat currency, or other Virtual assets, for such orders,
• facilitating the matching of transactions in Virtual assets between buyers and sellers,
• entering into virtual asset transactions as a dealer on behalf of the entity for its own account,
• making a market in virtual assets using client assets,
• providing placement, distribution or other issuance-related services to clients issuing virtual assets.

3) Category 1 VA issuance: It involves services related to issuing Fiat-Referenced Virtual Assets that purport to maintain a stable value in the context of one or more fiat currencies.

4) Custody Services: These services involve the safekeeping of Virtual assets for or on behalf of another entity and acting only on instructions from or on behalf of such entity.


5) Exchange Services: It involves the provision of any of the following services:
• conducting an exchange, trade or conversion between Virtual assets and fiat currency,
• conducting an exchange, trade or conversion between one or more Virtual assets,
• matching orders between buyers and sellers and conducting an exchange, trade or conversion between virtual assets and fiat currency or one or more Virtual assets,
• maintaining an order book for such exchanges.

6) Lending and Borrowing Services: It concerns transactions where virtual assets is transferred or lent from one party (known as the Lender) to another party (known as the Borrower) against the Borrower’s commitment to return the same upon the Lender’s request before or at the end of the agreed term.

7) VA Management and Investment Services: It is related to acting as an agent or fiduciary or taking responsibility for the management, administration or disposition of the client’s virtual assets.

8) VA Transfer and Settlement Services: It involves the transmission, transfer, or settlement of Virtual assets from one entity to another entity or virtual asset wallet, address or location.

The entity carrying out or intending to carry out virtual assets Activities or its employee carrying on or otherwise facilitating a virtual assets Activity on behalf of the entity must have adequate authorisation and licenses from VARA for carrying out the said virtual assets Activities.

When granting a license to a VASP for carrying out the virtual assets Activity, VARA considers the following factors:
• Whether the entity holds itself out as conducting a virtual assets Activity by way of business
• The adequacy of the regularity, scale and continuity of the virtual assets Activity carried out by the entity
• Whether there is any commercial element in the virtual assets Activity conducted, such as whether the entity receives remuneration or other commercial benefits for the virtual assets Activity conducted.

Trust this video helps you understand which activities shall qualify for virtual assets activities and what regulatory requirements need to be followed by VASPs to obtain a license from VARA for carrying out virtual assets activities in Dubai.

Stay tuned for more such AML videos.

Timestamps:
0:00 Introduction on What are VA Activities? & Who can carry out VA Activities in Dubai?
0:12 What are VA Activities in Dubai?
0:33 Which are the activities listed in Schedule 1 of the Regulations?
3:09 Who can carry out VA Activities in Dubai?
3:53 Conclusion and Regards

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