VARA VA Transfer and Settlement Services Rulebook (version dated 19 May 2025)chapter by chapter

Part II.C.5-retRecord Retention — Client transfer instructions

Virtual asset transfer and settlement providers must retain client transfer instructions for 8 years from the date of instruction.

Part II.F.3-retRecord Retention — Transfer receipts provided to clients

Virtual asset transfer and settlement service providers must retain transfer receipts issued to clients for eight years from the date of receipt.

Part I.A.1-2Part I.A Policies and procedures

VASPs must maintain written policies on rectifying non-executed, defectively executed or incomplete transfers, including refunds, and on Default Rules, reviewing their effectiveness at least yearly.

Part I.B.1-3Part I.B Public disclosures

Virtual asset service providers must publicly disclose conflicts of interest, privacy, whistleblowing and complaints policies, referral arrangements and benefits, third-party account or asset holdings, and lawful convictions of senior management or board members.

Part II.A.1-3Part II.A General requirements

Virtual asset service providers must comply with CBUAE payment and remittance requirements, the laws of every relevant jurisdiction for each transfer, and AML/CFT rules including the FATF Travel Rule.

Part II.B.1-2Part II.B Protection of client Virtual Assets

VASPs must not sell, transfer, lend, pledge, rehypothecate or otherwise use client virtual assets without the client's explicit consent, generally obtained once before services begin rather than per transfer.

Part II.C.1 Client authorisation

Procedures must ensure every transfer is authorised by the client and executed in accordance with client instructions.

Part II.C.2 Erroneous execution refund

VASPs must refund clients or restore accounts within 24 hours of becoming aware of an unauthorised or incorrectly executed transfer, and are liable for direct loss.

Part II.C.3-4 Sender and recipient VASP liability

Sender VASP is liable for correct delivery to recipients and must trace undelivered assets and notify its client; recipient VASP is liable only for its own proven error.

Part II.C.5 Instruction records

Virtual asset service providers must maintain records of all client instructions for eight years as part of transfer and settlement record keeping.

Part II.D.1-3Part II.D Client disclosures and terms

Before entering client agreements, VASPs must disclose material risks and terms, and for retail investors must give sixty days' notice of variations or VASP termination, with free client termination rights; liability cannot be excluded.

Part II.E.1Part II.E Exchange, trade or conversion

A VASP handling a transfer that involves exchange or conversion must use an Exchange-licensed or VARA-approved offshore entity, disclose method, fees, and remain directly responsible.

Part II.F.1-3Part II.F Receipts

VASPs must give clients prescribed receipts immediately after receiving transfer instructions and again after finalisation, and retain those receipts for eight years.

Part II.G.1-3Part II.G Benchmark global standards

VASPs must demonstrate alignment with internationally accepted market infrastructure standards and ensure timely settlement, considering matching, failure detection, remedial action and client performance monitoring.

Part II.H.1-4Part II.H Default Rules

VASPs must maintain legally enforceable default rules for clients unable to meet obligations, covering close-out, loss allocation and solvency protection, reviewed and tested annually.