In application of the provisions of this Resolution, the words and expressions set forth herein shall bear the meanings ascribed to them, unless the context otherwise requires:
State: United Arab Emirates.
Authority: Securities and Commodities Authority (SCA).
Chairman: Chairman of the Authority’s Board of Directors.
Local Licensing Authority: The concerned Local Authority regulating virtual assets in the concerned Emirate.
Cabinet Resolution: Cabinet Resolution No. (111) of 2022, Regulating Virtual Assets and Its Service Providers.
Rulebook: Regulations Manual of the Financial Activities approved pursuant to Authoritys’s CHairman Resolution No. (13/R.M) of 2021 and their amendments.
Virtual Asset Service Providers (VASPs): Any legal person engaged in one or more activities associated with VA or related operations for or on behalf of another person, such as Virtual Asset Platform Operator (VAPO), VA Broker, or VA Custodian, and any other activities in accordance with the provisions of the Cabinet Resolution.

The provisions of this Resolution shall apply to anyone who commits any of the acts that occur in violation of the provisions of the Cabinet Resolution and the Resolutions issued pursuant thereto.

1. SCA or the Local Licensing Authority – as the case may be – may impose one or more penalties on anyone who commits any of the acts that occur in violation of the provisions of the Cabinet Resolution and the Resolutions issued pursuant thereto, in accordance with the penalties and gradation specified in the table attached to this Resolution.
2. The Violator shall bear the expenses and costs of removing and addressing the damages resulting from the violation if he does not remove or address it.
3. SCA or the Local Licensing Authority – as the case may be – may refer the Violator of the provisions of the Cabinet Resolution to the Public Prosecution if the violation constitutes one of the crimes punishable by law.
4. SCA or the Local Licensing Authority – as the case may be – whenever the incident in question is related to formal procedures or as it deems appropriate, shall issue a warning to the Violator and direct him to correct and avoid repeating the violation in the future. In the event that the violation is not corrected within the period specified by SCA or the Local Licensing Authority - as the case may be - the penalty stipulated in accordance with the provisions of this Resolution shall be imposed.
5. The fine imposed by SCA or the Local Licensing Authority – as the case may be – on the violating person shall be paid within the payment deadline set by it. SCA or the Local Licensing Authority – as the case may be – may impose a daily late payment fine of (1,000) one thousand dirhams for each working day of late payment after the specified date, provided that the total late payment fines do not exceed the value of the fine initially imposed.
 

The Cabinet has the power to make any amendments to penalties mentioned herein, whether by addition, deletion or amendment.

Anyone with the capacity and interest may file a grievance against the administrative penalty with the authority that imposed the penalty, within (30) thirty days from the date of being notified of the administrative penalty against which the grievance is contested, provided that the grievance is reasoned and accompanied by all documents supporting it. The grievance shall be decided within (30). Thirty days from the date of its submission, in accordance with the procedures in force at that authority. The decision issued in this regard shall be final. non-compliance to respond within the aforementioned period shall be considered a rejection of the grievance.

1. Fines stipulated in this Resolution that are imposed by SCA shall be collected through the methods established by the Ministry of Finance.
2. The fines stipulated in this Resolution and imposed by the Local Licensing Authority shall be collected through the means in force at SCA in accordance with the legislation in force in the Emirate to which it belongs.
3. For the purpose of collecting the Administrative Fine specified in the resolution, a part of a day shall be considered a full day, and a part of a month shall be considered a full month.
4. SCA or the Local Licensing Authority – as the case may be – may take all measures it deems appropriate against the Violator in the event of non-compliance to pay the prescribed fine or non-compliance to correct the violation within the period specified in the Resolution issued concerning the violation.
5. The provisions of this Resolution shall not prejudice SCA of the Local Licensing Authority to impose any penalties or other measures or oblige the Violator to pay the losses incurred by the dealers as a result of the violations committed in accordance with the legislation in force therein.
 

This Resolution shall be published in the Official Gazette and shall enter into force (30) thirty days after the date of its publication.