1.

No Person shall perform any Payment Token Service within the UAE or directed to Persons in the UAE, unless such Person is Licensed or Registered by the Central Bank to perform such Payment Token Service.

2.

No Person shall perform any service, within the UAE or directed to Persons in the UAE, where that service:

This prohibition shall apply to all Persons, including any Person acting in the course of performing Virtual Asset activities for which it is licensed or regulated by SCA or a Local Licensing Authority.

3.

No Person shall, within the UAE or directed to Persons in the UAE, issue Algorithmic Stablecoins or Privacy Tokens or perform services relating to Algorithmic Stablecoins or Privacy Tokens. This prohibition shall apply to all Persons, including any Person acting in the course of performing Virtual Asset activities for which it is licensed or regulated by SCA or a Local Licensing Authority.

4.

A Licensee or Registree must not knowingly initiate, facilitate, effect or direct a Payment Token Transfer as part of its Payment Token Service unless the transfer is of a:

5.

A Foreign Payment Token Registree may only initiate, facilitate, effect or direct a Payment Token Transfer as part of its Payment Token Service in the UAE if the transfer is of a Foreign Payment Token being used (or sold for use) as a Means of Payment for purchase of Virtual Assets or derivatives of Virtual Assets.

6.

A Licensed Payment Token Issuer may only issue Dirham Payment Tokens to Persons resident in the UAE. For the avoidance of doubt, aside from this Article (2)6 there shall be no restriction under this Regulation as to the territory in which a Payment Token may be used or to or from which it may be transferred.

7.

No Merchant or other Person in the UAE selling goods or services during the course of business may accept a Virtual Asset towards payment for that sale unless that Virtual Asset is:

8.

A Bank may not act as a Payment Token Issuer, but may, subject to the licensing and other requirements of this regulation, set up a subsidiary, affiliate or other related entity to perform this activity.

9.

No Person shall engage in any Promotion, within the UAE or directed to Persons in the UAE, where such Promotion relates to Payment Token Services unless such Person:

10.

No Person shall engage in any Promotion, within the UAE or directed to Persons in the UAE, where such Promotion is for services relating to any Means of Payment unless the Promotion solely relates to:

This prohibition shall apply to all Persons, including any Person engaging in Promotions relating to Virtual Asset activities for which it is licensed or regulated by SCA or a Local Licensing Authority.

11.

No Person shall engage in a Promotion, within the UAE or directed to Persons in the UAE, where such Promotion is for the issuance of Algorithmic Stablecoins or Privacy Tokens or services relating to Algorithmic Stablecoins or Privacy Tokens. This prohibition shall apply to all Persons, including any Person engaging in Promotions relating to Virtual Asset activities for which it is licensed or regulated by SCA or a Local Licensing Authority.

12.

The Central Bank may require any Person to provide a reasonable level of evidence to demonstrate that such Person is not performing an activity in breach of this Article (2). The Central Bank may request such evidence on a single occasion or may require regular reporting (in such form as the Central Bank may specify from time to time) of such evidence by any Person.

13.

For the avoidance of doubt, reference to ‘the UAE’ in this Article (2) excludes the jurisdiction of the Financial Free Zones.