Understanding the Penalties for Non-Compliance with VARA Rules

1. Regulations or Directives issued by any entity, including Virtual Asset Service Providers (VASPs). 

2. Rules including, but not limited to those in the Compliance and Risk Rulebook (Part III),  by any VASPs. 

1. Violating rules in the Compliance and Risk Management Rulebook [not covered in No. 1 above] or Market Conduct Rulebook. 

2. Breaking regulations or directives related to market offenses, including but not limited to, VASPs. 

1. For individuals: 

• Up to AED 20,000,000 or 200% of profits gained/losses avoided, whichever is higher. 

2. For any corporate Entity, the fine can be up to the highest of: 

• AED 50,000,000, 

• 15% of the corporate Entity’s annual revenue, or 

• 300% of the profits gained or losses avoided (if greater than AED 50,000,000 or 15% of annual revenue). 

Unauthorized VA Activities.: 

Conducting Virtual Asset (VA) Activities without authorization and licensing by VARA, in violation of Regulation III.A.1. 

Improper Issuance of Virtual Assets:

Issuing a Virtual Asset in violation of Regulation II.A.1. 

Failure to Register:

Not meeting the mandatory registration requirement under Regulation IV.A.7. 

Misrepresentation:

Misleading the public by: 

• Claiming a false relationship or engagement with VARA, or 

• Claiming an ability to influence or accelerate the licensing process (including but not limited to, any violations of Regulation X). 

UBO Disclosure Violations:

Failing to meet Ultimate Beneficial Owner (UBO) disclosure requirements as outlined in the Regulations, Rules, or Directives.