Article (9): Foreign Payment Token Issuer Registration

2/2024 Effective from 21/8/2024

1.	A Person incorporated outside the UAE (which for the purposes of this Regulation would include a Person incorporated in a Financial Free Zone) may apply for a Registration as a Foreign Payment Token Issuer.

Registration process

2.

To be granted a Registration as a Registered Foreign Payment Token Issuer, an Applicant shall, at the time of submitting an Application:

a)	provide the necessary documents and information specified in the Central Bank application form as provided by the Licensing Division;
b)	obtain written evidence of the non-objection from SCA or a Local Licensing Authority for the Registration based on a joint framework between the relevant authorities; and
c)	demonstrate, in such a manner as the Licensing Division may direct, that it will meet any conditions which may be imposed by the Central Bank pursuant to Article (7)9(c) and the requirements listed in Article (9)7.

3.

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

4.

An Applicant for a Foreign Payment Token Issuer Registration shall, at the time of submitting an Application, provide a list of all Foreign Payment Tokens that it intends to issue and obtain a legal opinion on the assessment for all Foreign Payment Tokens. The legal opinion must assess whether the Foreign Payment Tokens and the operations of the Payment Token Issuer comply with this Regulation including but not limited to whether the White Paper is complete and accurate.

5.

Article (7) shall apply to Applicants and Applications for Registration as a Foreign Payment Token Issuer, for which purposes:

a)	references to License, Licensee and licensing in that Article shall be construed as references to Registration, Registered Foreign Payment Token Issuer and registration;
b)	Article (7)3, Article (7)4, and Article (7)9(a) shall not apply; and
c)	the Applicant shall only be required to provide such information and documents listed in the Annex as the Central Bank may specify.

6.

Where the Applicant is regulated by another authority, including by authorities in other jurisdictions, the Central Bank may contact the relevant authority about the Applicant. The Central Bank may take into account 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 the relevant authority has any concern about that Applicant extending its Payment Token business to the UAE.

Application of this Regulation to Registered Foreign Payment Token Issuers

7.

Without prejudice to the remainder of this Article (9), a Registered Foreign Payment Token Issuer shall comply with the following Articles of this Regulation:

a)	Article (10);
b)	Article (11);
c)	Article (12);
d)	Article (17);
e)	Article (18);
f)	Article (21)1 to Article (21)5;
g)	Article (24);
h)	Article (25)1 and Article (25)3;
i)	Article (26); and
j)	Article (38), to the extent provided for in those Articles.

8.

A Registered Foreign Payment Token Issuer shall:

a)	hold a reserve of the same value as the total value of Foreign Payment Tokens which that Foreign Payment Token Registree has issued, and denominated in the same currency as that of the Foreign Payment Tokens which that Foreign Payment Token Registree has issued;
b)	procure and publish regular audits of the reserve referred to in (a) by an External Auditor;
c)	at any time requested by the Central Bank, demonstrate that it holds Fiat Currency received from Customers for the issuance of Payment Tokens to equivalent standards of proper management and safekeeping as are set out in Article (22); and
d)	comply with all laws, regulations and guidance which apply to it in the jurisdiction of its incorporation and in any other jurisdiction in which it operates, including but not limited to AML/CFT laws and regulations.