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Proxima Eight FZE LLC
Business Centre, Sharjah Publishing City Free Zone, Sharjah, United Arab Emirates
Business Centre, Sharjah Publishing City Free Zone, Sharjah, United Arab Emirates
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- Category 1
Fiat-Referenced Virtual Assets (FRVA / Stablecoins)Tokens backed by fiat currency reserves. Full VARA Licence required. Additional requirements under ANNEX 1 of the VA Issuance Rulebook:- 1:1 fiat reserve backing
- Reserves in segregated UAE bank accounts
- Regular reserve attestation by approved auditor
- Redemption rights for token holders at par value
- Category 2
All Other Virtual AssetsAny VA that is not Category 1 and not an Exempt VA. VARA prior approval required (not a full licence). Requirements:- VARA Issuance Approval Form (Category 2)
- Whitepaper: purpose, use, technical architecture, rights of holders, risk factors, issuer governance, use of proceeds
- AML/CFT compliance
- Technical, information security, data privacy, and cryptographic controls
- No anonymity-enhanced tokens permitted
What VARA Prohibits
- Algorithmic stablecoins (no fiat reserve backing)
- Anonymity-enhanced tokens (e.g. Monero, Zcash)
- Any token issuance or marketing before VARA whitepaper approval
- Material changes to an approved token without VARA re-approval (re-submission fee applies)
Key Requirements for Category 1
- CapitalAs specified in the VA Issuance Rulebook (separate from standard activity capital table).
- Compulsory RulebooksCompany Rulebook, Compliance and Risk Management Rulebook, Technology and Information Rulebook, Market Conduct Rulebook — plus FRVA Rules in Annex 1 of the VA Issuance Rulebook.
- Responsible Individuals2 RIs — UAE residents, full-time, VARA-approved.
What We Do for You
- Token classificationCategory 1 vs 2, regulatory treatment, potential securities law implications under UAE law.
- Whitepaper preparationVARA-compliant whitepaper covering all required disclosures.
- AML/KYC for token saleInvestor KYC/AML procedures for the token offering process.
- Reserve structure (Category 1)Fiat reserve holding structure, UAE bank account setup, attestation framework design.
- VARA engagementWhitepaper review and approval process managed directly with VARA.
- Post-issuance complianceOngoing reporting, reserve attestations (Category 1), material change procedures.
Frequently Asked Questions
No. Any public communication about an upcoming token — social media posts, community announcements, private investor communications — before VARA whitepaper approval is a violation of the Market Conduct Rulebook.
Material changes require a whitepaper re-submission to VARA. VARA reviews, assesses, and approves the change before it takes effect. A fee applies.
Tokens with equity-like rights, profit-sharing features, or investment contract characteristics may also fall under CMA or ADGM/FSRA securities regulation, independently of VARA's framework. We conduct a full regulatory classification analysis.
If the issuing entity is in Dubai or the token is offered to clients in the UAE, VARA's framework applies regardless of which blockchain the token is issued on.
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Please note: We do not provide any personalized investment advice, token selection guidance, or transaction recommendations. AMLzone is a compliance consultancy and project management services provider, not a Virtual Asset Advisor.
Please note: We do not provide any personalized investment advice, token selection guidance, or transaction recommendations. AMLzone is a compliance consultancy and project management services provider, not a Virtual Asset Advisor.