Each Company incorporated in the Zone must comply with Federal Law when engaging in its business activities in the UAE. Accordingly, no Company shall engage in any business activity in the UAE, whether inside or outside the Zone (within the meaning of Article 5 of Federal Law No. 32 of 2021 concerning Commercial Companies), unless it has first obtained all appropriate licenses and/or approvals required for the purposes its activities from the competent governmental or regulatory authorities in the UAE.
The following activities which are considered licensed by either the Securities Commodities Authority (SCA) or the Central Bank of the UAE (CBUAE) are strictly prohibited at RAK DAO.
- Acting as an exchange or provision of exchange services between one or more forms of virtual assets
- Acting as a broker / dealer or provision of brokerage services in trading operations in Virtual Assets
- Providing advice or custody services management, and control services
- Providing electronic payment services
- Provision of Virtual Asset transfer services
- Provision of Virtual Asset Platform’s operation and management services
- Provision of financial services related to offering and/or selling by the issuer of the Virtual assets or participating in providing those services.
- Marketing, promotion, or solicitation
- Managing, processing, or dealing in any client or third-party funds or assets
- Virtual assets and VA services for payment purposes, including stored value facilities (Payment related services are under the CB UAE Jurisdiction).
- Providing a service that facilitates companies accepting VA as payment.
- VASP Payment processor services includes:
- Allowing users to send fiat currencies to their accounts at virtual asset exchanges, particularly when the exchange is not able to obtain banking services itself;
- Accepting virtual assets from the merchant’s customers and converting them to fiat currencies on behalf of the merchant; and
- Offering a user-friendly interface that enables a merchant’s customers to carry out decentralized P2P transactions using basic blockchain technology.
It is your duty to undertake your own investigations and evaluations of your intended business activities to determine whether it constitutes a regulated activity which requires a license and/or approval from the relevant governmental or regulatory authorities in the UAE. If you are not aware of or do not know whether your intended business activity shall constitute a regulated activity, you should seek legal advice.
RAK DAO shall not have any liability in respect of a Company’s failure to obtain the relevant licenses and/or approvals from any governmental or regulatory authority in the UAE.
RAK DAO has no responsibility for reviewing or verifying the intended business activities of the Company to determine whether it shall constitute a regulated activity requiring license and/or approval from the relevant governmental or regulatory authorities in the UAE including but not limited to SCA and CBUAE.
The company shall obtain appropriate approvals prior to any Media promotions & communication pertaining to RAK DAO license and shall ensure the promotions are consistent with the nature of licensed activity in word and spirit.
If the company breaches the declaration and fails to comply with regulatory requirements, this will result in the company being subjected to administrative penalties, including suspension of license/fines, and will be reported to the relevant regulatory authority Securities and Commodities Authority (SCA).
Please note that these Terms and Conditions are subject to change to ensure ongoing compliance with applicable sanctions laws and regulations.
For more legal information, please refer to the Ras Al Khaima Digital Asset Oasis Companies Regulation 2023 (“Companies Regulation”) and DAO Association Regulations 2024.
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