1. VA Standards

1.1 OFZA shall take all reasonable steps including, but not limited to, conducting relevant due diligence to ensure all Virtual Assets listed in OFZA platform meet its VA Standards prior to, and at all times during, the OFZA providing any VA Activities in relation to such Virtual Assets. 

1.2 These standards have been prepared in accordance with Rule VIII.A of the VARA Market Conduct Rulebook. Additionally, these standards are published on OFZA’s website in accordance with the VARA Market Conduct Rulebook 

1.3 OFZA considers the following factors for all Virtual Assets: 

a) its market capitalisation, fully diluted value and liquidity, and whether such metrics have trended downwards over time; 

b) its design, features and use cases, wether or not intended by the Issuer or relevant developers; 

c) whether there are features which may materially affect a OFZA’s compliance with applicable laws, Regulations, Rules or Directives, including but not limited to those relating to AML/CFT, sanctions, securities, intellectual property; 

d) regulatory treatment by VARA and other appropriate authorities (including those outside of the Emirate), in particular wether the issuance of the Virtual Asset has received any regulatory approvals; 

e) whether a Virtual Asset is prohibited by VARA or any other appropriate authorities (both inside or outside the UAE) in jurisdictions in which OFZA provide VA Activities, or equivalent activities, in relation to such Virtual Asset; 

f) the security and immutability of the underlying DLT protocol; 

g) whether it may be susceptible to price manipulation or any market abuse practices for any reason and relevant mitigations that will be implemented by OFZA; 

h) We will consider any rights related to the VA, including whether they represent rights to any other assets (such as airdrops of other VAs), and the enforceability of those rights 

i) whether potential or actual conflicts of interest may arise should OFZA provide any VA Activities in relation to the Virtual Asset and relevant mitigations. We will assess any potential or actual conflicts of interest, and any relevant mitigants to such conflicts that could be put in place 

j) We will assess the availability of sufficient assets in order that we are able to satisfy any obligation we have with respect to the VA and any relevant VA Activities 

k) We will assess the background of its Issuer including, but not limited to, relevant experience in the Virtual Asset sector and whether it has been subject to any investigations or claims in relation to fraud or deceit. 

l) We will, if the VA has an underlying physical market, assess and form an understanding of the underlying physical market and assess whether, and to what extent, the VA in question can have adverse impacts on such a market. 

m) OFZA should review Virtual Asset terms and conditions on a periodic basis for appropriate correlation with any physical market to ensure such terms and conditions conform to standards and practices in that physical market. 

n) We will take into consideration any other factors, benefits, and risks we may deem relevant to our clients and to OFZA. 

1.4 OFZA regularly, and on an ongoing basis, assesses relevant information to ensure that a Virtual Asset that it provides VA Activities in relation to continues to meet its VA Standards. 

1.5 A Virtual Asset that initially meets OFZA’s VA Standards may no longer fulfil such standards in the event of certain events, such as evidence of market manipulation by the issuer, lack of sufficient assets to satisfy the issuer’s obligations, any regulatory objections/restrictions, financial crimes include money laundering, fraud, or other similar illicit activities exposure. In teh event that a Virtual Asset no longer meets our VA Standards, we may suspend support for such Virtual Assets. 

2. VA Listing Criteria 

2.1 As part of OFZA’s VA Listing Policy, VA Standards will all be assessed when any VA is being considered for listing on OFZA. The information gathered, analysis performed and decision on whether to list will be documented, with such documentation kept on record for eight years and will make available to VARA upon request. 

(a) Listing Evaluation & Approval:  Ensures thorough assessment before a VA is made available on the platform. 

(b) Ongoing Monitoring & Periodic Review: Sets out the ongoing monitoring procedures to ensure that listed VAs remain compliant with regulatory requirements. 

(c) Suspension or Delisting: Defines the steps to suspend or remove any asset that no longer meets the required standards or has violated any compliance regulations. 

(d) Documentation & Record Retention: Establishes guidelines for retaining records of evaluations, reviews, and actions taken. 

2.2 A Virtual Asset will only be listed, or remain listed, on the OFZA platform if it meets the following VA standards: 

2.2.1 Liquidity and Market Metrics: The asset must demonstrate sufficient liquidity and meet OFZA’s minimum market capitalization and fully diluted value requirements. 

2.2.2 Clear Utility: The asset should have identifiable features, a clear utility, specific use cases, or active community support. 

2.2.3 Transaction Traceability: The asset must be traceable, with no anonymity features that impede on-chain transaction monitoring system (Chainalysis). 

2.2.4 Compliance with Regulations: The asset must comply with all relevant laws, regulations, and rules, including but not limited to those set by VARA and other relevant regulatory bodies in the jurisdiction. 

2.2.5 Adherence to Laws: The asset must comply with all relevant legal frameworks, regulations, rules, and directives. 

2.2.6 Compliance with Anti-Money Laundering (AML) and Counter Terrorist Financing (CTF) Regulations: The asset should not be predominantly associated with illicit activities, including but not limited to money laundering, terrorist financing, or fraud. 

2.2.7 No Prohibitions by Regulatory Authorities: The VA must not be prohibited by VARA or any other applicable regulatory body within the jurisdiction where the exchange operates. 

3. Suspension and Delisting Procedures: 

3.1 If a VA ceases to meet the required standards due to regulatory violations, financial crimes, security vulnerabilities, fraud, or any other material event, OFZA may suspend or delist the virtual asset. 

3.2 OFZA has set conditions under which VA Activities in relation to a Virtual Asset may be suspended, including where a Virtual Asset no longer meets its VA Standards. OFZA has implemented necessary operational procedures and controls in the event such conditions are met. The process of suspension and delisting include but not limited to: 

a) Internal Risk Assessment and Decision Making: Evaluation of risks to OFZA and users. 

b) Notification to Regulators: Informing VARA and other relevant authorities about the suspension or delisting where applicable. 

c) Regulatory Actions: Implementation of any additional actions mandated by VARA or other relevant authorities. 

3.3 OFZA shall notify VARA as soon as possible after becoming aware that a Virtual Asset no longer meets its VA Standards and shall take such steps as VARA may direct to minimise any adverse impact on clients arising as a result. 

3.4 VARA shall have the right to require the suspension of a VA Activity in respect of any Virtual Asset upon reasonable grounds it deems appropriate. 

4. Documentation and Record Retention 

4.1 Record Keeping: All decisions related to VA listings, reviews, suspensions, and delisting will be documented thoroughly. This includes: 

a) Due Diligence Reports: Detailed reports of the evaluations conducted before listing an asset. 

b) Compliance Records: Evidence of ongoing monitoring and compliance checks. 

c) Suspension and Delisting Documentation: Full records of any actions taken regarding the suspension or removal of an asset. 

4.2 Retention Period: All documentation related to VAs on the platform will be retained for a minimum period of eight (8) years. These records will be made available to VARA upon request, ensuring full transparency and compliance. 

5. Continuous Oversight and Regulatory Adaptation 

5.1 In the event of significant market shifts, technological advancements, or changes in regulatory frameworks, OFZA will take prompt and appropriate action to address any new risks, ensuring ongoing client protection and platform reliability. 

5.2 Please reach out to our client support team if you have any questions or require further information at [email protected]