Article (8): Application for a Non-Objection to perform Payment Token Conversion or Foreign Payment Token Custody and Transfer

2/2024 Effective from 21/8/2024

1.	A Virtual Assets Exchange Platform Operator may apply for a Non-Objection Registration in order to perform Payment Token Conversion.
2.	A Bank or Exchange House may apply for a Non-Objection Registration in order to perform Dirham Payment Token Conversion.
3.	A Person who is licensed by SCA or any Local Licensing Authority as a Virtual Assets Service Provider to provide custody services for Virtual Assets, may apply for a Non-Objection Registration to perform Payment Token Custody and Transfer of Foreign Payment Tokens. For the avoidance of doubt, any other Person seeking to perform Payment Token Custody and Transfer shall be required to obtain a Payment Token Custodian and Transferor license from the Central Bank.
4.	To be granted a Non-Objection Registration, an Applicant must provide details in its Application of its SCA or Local Licensing Authority licensing status, where applicable, and the nature and extent of its SCA-licensed or Local Licensing Authority licensed business.
5.	To be granted a Non-Objection Registration, an Applicant must demonstrate, in such manner as the Licensing Division may direct, that it will meet any conditions imposed by the Central Bank and the requirements listed in Article (8)10 or Article 8(11)

Non-Objection Registration process

6.

To be granted a Registration as a Payment Token Conversion Provider or Foreign Payment Token Custodian and Transferor, an Applicant shall, at the time of submitting an Application, provide the necessary documents and information specified in the Central Bank application form as provided by the Licensing Division.

7.

As part of the licensing process, separate face-to-face meetings between Central Bank staff and the Applicant’s and its Controllers’ Boards and Senior Management may be conducted.

8.

Article (7) shall apply to Applicants and Applications for Registration as a Payment Token Conversion Provider or Foreign Payment Token Custodian and Transferor, for which purposes:

a)	references to License, Licensee and licensing in that Article shall be construed as references to Non-Objection Registration, Registered Payment Token Conversion Provider and registration or Registered Foreign Payment Token Custodian and Transferor; and
b)	the Applicant shall only be required to provide such information and documents listed in the Annex as the Central Bank may specify.

9.

The Central Bank may contact SCA and any relevant Local Licensing Authority to obtain such information as the Central Bank considers relevant in relation to the Applicant, including in order to take into account:

a)	the relevant authority’s views in respect of matters such as the financial soundness and the overall internal control environment of the Applicant, and whether SCA or any relevant Local Licensing Authority has any concern about that Applicant extending its business to include Payment Token Conversion; and
b)	the relevant authority’s scope of and approach to regulation and supervision of the Applicant, in order to assist the Central Bank with determining which if any conditions or requirements of this Regulation (in addition to those listed in Article (7)9(c), Article (8)10 and Article (8)11, as applicable) the Central Bank will impose on the Applicant.

Application of this Regulation to Registered Payment Token Conversion Providers

10.

Without prejudice to the other provisions of this Article (8), a Registered Payment Token Conversion Provider which is a Virtual Assets Exchange Platform Operator shall comply with the following Articles of this Regulation:

(i)	Article (10);
(ii)	Article (11);
(iii)	Article (12);
(iv)	Article (17)2;
(v)	Article (18);
(vi)	Article (24);
(vii)	Article (25);
(viii)	Article (33);
(ix)	Article (34);
(x)	Article (35);
(xi)	Article (36);
(xii)	Article (37); and
(xiii)	Article (38),

to the extent provided for in those Articles.

11.

Without prejudice to the other provisions of this Article (8) and without prejudice to the application of other laws and regulations, a Registered Payment Token Conversion Provider which is a Bank or Exchange House shall comply with the following Articles of this Regulation:

(i)	Article (10);
(ii)	Article (11);
(iii)	Article (12);
(iv)	Article (17)2;
(v)	Article (18);
(vi)	Article (23);
(vii)	Article (24);
(viii)	Article (25);
(ix)	Article (27);
(x)	Article (28);
(xi)	Article (29);
(xii)	Article (33);
(xiii)	Article (34);
(xiv)	Article (35);
(xv)	Article (36);
(xvi)	Article (37); and
(xvii)	Article (38),

to the extent provided for in those Articles.

12.

The Central Bank may apply any other provision or requirement under this Regulation, not already applicable, to a Registered Payment Token Conversion Provider or Registered Foreign Payment

Token Custodian and Transferor if the Central Bank determines it necessary to do so to achieve its statutory objectives.