Legislation Details
- Full Title: Cabinet Resolution Concerning the List of Violations and Administrative Penalties for Acts Violating the Provisions of Cabinet Resolution Regulating Virtual Assets and its Service Providers
- Law Type: Cabinet Resolution
- Law Number: No. (99) of 2024
- Issued Date: 06 Sep 2024
- Effective Date: 16 Oct 2024
- Official Gazette: No. 783
- Sector: Economy and Business
- Status: Active
- Number of Articles: 14
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution establishes a list of violations and administrative penalties for acts that violate the provisions of the previous Cabinet Resolution No. (111) of 2022 Regulating Virtual Assets and its Service Providers. The resolution empowers the Securities and Commodities Authority (SCA) or the Local Licensing Authority to impose penalties on anyone who commits such violations, including fines, warnings, and referrals to public prosecution. The resolution also outlines the grievance process and general provisions for collecting and enforcing the penalties. (Cabinet Resolution Concerning the List of Violations and Administrative Penalties for Acts Violating the Provisions of Cabinet Resolution Regulating Virtual Assets and its Service Providers, 2024, Art. 1-7)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to establish a list of violations and administrative penalties for acts that violate the provisions of the previous Cabinet Resolution No. (111) of 2022 Regulating Virtual Assets and its Service Providers. The purpose is to empower the Securities and Commodities Authority (SCA) or the Local Licensing Authority to enforce the previous resolution by imposing penalties on anyone who commits such violations. (Cabinet Resolution Concerning the List of Violations and Administrative Penalties for Acts Violating the Provisions of Cabinet Resolution Regulating Virtual Assets and its Service Providers, 2024, Art. 2)
What are the key definitions under this law?
The key definitions under this Cabinet Resolution are:
- State: United Arab Emirates
- Authority: Securities and Commodities Authority (SCA)
- Chairman: Chairman of the Authority's Board of Directors
- Local Licensing Authority: The concerned Local Authority regulating virtual assets in the concerned Emirate
- Cabinet Resolution: Cabinet Resolution No. (111) of 2022, Regulating Virtual Assets and Its Service Providers
- Rulebook: Regulations Manual of the Financial Activities approved pursuant to Authority's Chairman Resolution No. (13/R.M) of 2021 and their amendments
- Virtual Asset Service Providers (VASPs): Any legal person engaged in one or more activities associated with VA or related operations for or on behalf of another person, such as Virtual Asset Platform Operator (VAPO), VA Broker, or VA Custodian, and any other activities in accordance with the provisions of the Cabinet Resolution
(Cabinet Resolution Concerning the List of Violations and Administrative Penalties for Acts Violating the Provisions of Cabinet Resolution Regulating Virtual Assets and its Service Providers, 2024, Art. 1)
What are the main obligations and requirements?
This Cabinet Resolution does not directly impose any obligations or requirements. Instead, it empowers the Securities and Commodities Authority (SCA) or the Local Licensing Authority to impose administrative penalties on anyone who commits acts in violation of the provisions of the previous Cabinet Resolution No. (111) of 2022 Regulating Virtual Assets and its Service Providers. (Cabinet Resolution Concerning the List of Violations and Administrative Penalties for Acts Violating the Provisions of Cabinet Resolution Regulating Virtual Assets and its Service Providers, 2024, Art. 2-3)
What are the penalties for non-compliance?
The Cabinet Resolution empowers the SCA or the Local Licensing Authority to impose one or more of the following administrative penalties on anyone who commits acts in violation of the provisions of the previous Cabinet Resolution No. (111) of 2022 Regulating Virtual Assets and its Service Providers: 1. Fines 2. Warnings and directives to correct and avoid repeating the violation 3. Referral to the Public Prosecution if the violation constitutes a crime punishable by law The resolution also allows the SCA or Local Licensing Authority to impose a daily late payment fine of AED 1,000 for each working day of late payment of the initial fine, up to the value of the initial fine. (Cabinet Resolution Concerning the List of Violations and Administrative Penalties for Acts Violating the Provisions of Cabinet Resolution Regulating Virtual Assets and its Service Providers, 2024, Art. 3)
Which authorities or bodies are responsible for enforcement?
The Cabinet Resolution empowers two authorities to enforce the administrative penalties: 1. The Securities and Commodities Authority (SCA) 2. The Local Licensing Authority - the concerned local authority regulating virtual assets in the relevant Emirate These authorities have the power to impose the administrative penalties specified in the resolution, as well as take any other appropriate measures against violators. (Cabinet Resolution Concerning the List of Violations and Administrative Penalties for Acts Violating the Provisions of Cabinet Resolution Regulating Virtual Assets and its Service Providers, 2024, Art. 3)
What fees, charges, or financial provisions are specified?
The Cabinet Resolution specifies the following financial provisions: 1. Fines imposed by the SCA shall be collected through the methods established by the Ministry of Finance. 2. Fines imposed by the Local Licensing Authority shall be collected through the means in force at the SCA in accordance with the legislation in force in the relevant Emirate. 3. For the purpose of collecting the administrative fine, a part of a day shall be considered a full day, and a part of a month shall be considered a full month. (Cabinet Resolution Concerning the List of Violations and Administrative Penalties for Acts Violating the Provisions of Cabinet Resolution Regulating Virtual Assets and its Service Providers, 2024, Art. 6)
How are disputes resolved under this law?
The Cabinet Resolution provides a grievance process for anyone with the capacity and interest to contest the administrative penalties imposed by the SCA or Local Licensing Authority. The key provisions are: 1. The grievance must be filed within 30 days of being notified of the penalty. 2. The grievance must be reasoned and accompanied by supporting documents. 3. The authority that imposed the penalty must decide on the grievance within 30 days of its submission. 4. The decision on the grievance is final, and non-response within the 30-day period is considered a rejection of the grievance. (Cabinet Resolution Concerning the List of Violations and Administrative Penalties for Acts Violating the Provisions of Cabinet Resolution Regulating Virtual Assets and its Service Providers, 2024, Art. 5)
When did this law come into effect?
This Cabinet Resolution shall be published in the Official Gazette and shall enter into force 30 days after the date of its publication. (Cabinet Resolution Concerning the List of Violations and Administrative Penalties for Acts Violating the Provisions of Cabinet Resolution Regulating Virtual Assets and its Service Providers, 2024, Art. 7)
Source Documents
This article analyses Cabinet Resolution Concerning the List of Violations and Administrative Penalties for Acts Violating the Provisions of Cabinet Resolution Regulating Virtual Assets and its Service Providers for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.