Administrative Order No. 02/2022

سلطة دبي لتنظيم األصول االفتراضية AUTHORITY REGULATORY ASSETS VIRTUAL DUBAI ً 1 ADMINISTRATIVE ORDER NO. 02/2022:
PURSUANT TO, AND TO BE READ IN CONJUNCTION WITH ISSUED ADMINISTRATIVE ORDER NO. 01/2022 RELATING TO REGULATION OF MARKETING, ADVERTISING AND PROMOTIONS RELATED TO VIRTUAL ASSETS1 [MARKETING REGULATION], THE DUBAI VIRTUAL ASSETS REGULATORY AUTHORITY [VARA2] UNDERTAKES TO IMPOSE THE FOLLOWING FINES AND PENALTIES IN THE EVENT OF VIOLATION OR NON-COMPLIANCE

1. Virtual Asset is defined in the Dubai Virtual Asset Law as: ‘a digital representation of value that
   may be digitally traded, transferred, or used as an exchange or payment tool, or for investment purposes; This includes Virtual Tokens [a digital representation of a set of rights that can be digitally offered and traded through a Virtual Asset Platform], and any digital representation of any other value as determined by VARA’.
2. Established and authorised by Law No. [4] of 2022 Regulating Virtual Assets in the Emirate of
   Dubai [Dubai Virtual Asset Law] as the competent entity in charge of regulating, supervising and overseeing Virtual Assets [VA] and Virtual Asset Service Providers [VASPs] conducting authorised Virtual Asset activities [VA Activities] in the Emirate of Dubai. ً
3. Pursuant to Article [20] of the Dubai Virtual Asset Law, VARA may issue fines or
   take any of the enforcement measures as set out in that Article, with respect to any violations of the Marketing Regulation.
4. In addition to any consequences under all other applicable laws, regulations,
   guidance or rules, an Entity that commits any of the violations mentioned below will be subject to, in the first instance [i] a cease and desist warning from VARA; and thereafter as may be deemed necessary, [ii] corresponding penalties indicated hereunder.
5. Pursuant to Article [18] of the Dubai Virtual Asset Law, VARA may take actions,
   or measures of suspension or restriction, as set out in that Article, with respect to any violations of the Marketing Regulation.
6. Penalty Incremental to Fines: In addition to the financial penalty, VARA may
   impose one or more of the following measures against any Entity that is found to be in violation of the Marketing Regulation and fails to adequately address the concerns raised by the cease and desist warning issued by VARA:
   i. Require immediate suspension of all Marketing for a period not exceeding
   six [6] months;
   ii. Revoke any VARA-issued licence, rescind any VARA approvals, and/or
   revoke/suspend any commercial Trade licence[s] in coordination with the competent authority; and I PREAMBLE تمهيد I ّ
   iii. Require the Entity to issue a public statement confirming that it has
   violated the Marketing Regulation.
   Violation Fine
   الغرامة المخالفة [Dirhams in[
7. Failure to comply with paragraph II.2 of the Marketing
   Regulation regarding paid content;
   OR
   Carrying out Marketing relating to VA or VA Activities on any form of media platform after a request from VARA not to do so.
8. Failure to comply with paragraph II.7 of the Marketing
   Regulation by entities not licensed by VARA but targeting residents and/or customers within the Emirate in relation to VA activities.
9. Failure to comply with paragraph II.4 of the Marketing
   Regulation regarding issuance of any forms of VA without VARA approval and/or licence. 150,000 150,000 100,000
10. Failure to clearly communicate to the public the noncompliance with the Marketing Regulation as reasons for any
    suspension or cancellation penalties.
    100,000
11. Failure to maintain the necessary records in compliance with
    paragraph II.3 of the Marketing Regulation. 50,000
12. Any other failure to comply with the Marketing Regulation. 50,000
13. Failure to ensure that any marketing, promotion or advertising
    meets the requirements of paragraph II.1 and/or II.5 of the Marketing Regulation [whether directly undertaken, or facilitated as a service provider]; AND/OR Failure to notify immediately VARA of any non-compliance post occurrence. 200,000 200,000 150,000 150,000 100,000 A B C D E F G
14. Repeat Violation: If an Entity repeats the same violation within one year from
    the date of the previous violation, the amount of the fine in the table will be doubled, provided that a fine does not exceed five hundred thousand Dirhams [AED 500,000] per offence. …. …. HELAL SAEED ALMARRI Chairman Virtual Assets Regulatory Authority END OF DOCUMENT