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A. General Prohibition and Exemptions

1. General prohibition. No Entity may carry out any VA Activity by way of business or promote, offer, or purport to do so, in the Emirate, unless it is—
 
  a. authorised and Licensed by VARA for the VA Activity;
  b. an employee carrying on or otherwise facilitating a VA Activity on behalf of its employer that is Licensed by VARA; or
  c. an Exempt Entity.
 
2. “By way of business” requirement. For the purposes of Regulation III.A.1, VARA shall have sole and absolute discretion in determining whether an Entity carries on a VA Activity by way of business, and shall have regard to the following factors when making such determination—
 
  a. whether the Entity holds itself out as conducting a VA Activity by way of business;
  b. the regularity, scale and continuity of the VA Activity carried out by the Entity; and
  c. whether there is any commercial element in how the VA Activity is being conducted, such as whether the Entity receives remuneration or other commercial benefits or value in kind for carrying out the VA Activity.
 
3. False claims of VASP or Exempt Entity status.
 
  a. An Entity which, in relation to the VA Activity in question, is neither Licensed by VARA to carry out the VA Activity nor an Exempt Entity—
 
    i. must not describe itself in whatever terms as—
 
      1. a VASP or otherwise authorised or Licensed by VARA; or
      2. an Exempt Entity;
 
    ii. behave, or otherwise hold itself out, in a manner which indicates, or which is reasonably likely to be understood as indicating, that it is—
 
      1. a VASP or otherwise authorised or Licensed by VARA; or
      2. an Exempt Entity.
 
4. UAE Central Bank.
 
  a. All VA Activities relating to UAE-CBDCs shall remain under the sole and exclusive regulatory purview of the CBUAE.
  b. VASPs providing VA Activities in the Emirate will need to comply with applicable CBUAE federal regulations and/or guidance, including but not limited to as they pertain to specific Virtual Assets [CBDCs and AED referenced fiat-referenced Virtual Assets].