Book traversal links for Article (32): Certainty of Transfers of Payment Tokens
Article (32): Certainty of Transfers of Payment Tokens
2/2024 Effective from 21/8/20241. | Licensed Payment Token Issuers must exercise prudence and due diligence in their choice of Distributed Ledger Technology for their Payment Tokens, to ensure that the Distributed Ledger Technology is technologically resilient, secure and has a clear operating procedure in which Customers can identify and understand the point at which a Payment Token passes from one Wallet to another. A copy of this due diligence must be provided to the Central Bank as part of the Licensed Payment Token Issuer’s Application. | ||||
2. | Licensed Payment Token Issuers must specify, in their White Paper and Customer Agreement, the point at which the lawful power of disposal over a Payment Token transfers from a sending Tokenholder to a receiving Tokenholder in a Payment Token Transfer. This must be specific to the Distributed Ledger Technology of the Payment Token. | ||||
3. | A Person may provide evidence to a Licensed Payment Token Issuer demonstrating that, but for a ‘fork’, error or similar failure in the operation of the Distributed Ledger Technology of a Payment Token, they would be the Tokenholder of that Token, in which case the Licensed Payment Token Issuer shall give them the same rights of redemption as are given to a Tokenholder pursuant to Article (21). | ||||
4. | A Licensed Payment Token Issuer must include a warning in the White Paper and Customer Agreement for each Payment Token that they issue, that:
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