By Dr AbdelGadir Warsama Ghalib, Legal Counsel
Dr AbdelGadir Warsama Ghalib, Legal Counsel
In many jurisdictions, there are certain laws to regulate virtual assets. Based on such laws, there are certain terms related to virtual assets language, such as “virtual assets”, “virtual token”, “virtual assets platform”, “distributed ledger technology”, “virtual asset provider”, “virtual asset portfolio”, etc. Also, there are certain legal provisions governing, regulation of virtual assets transactions and activities.
Moreover, to more understand this issue, there are other important provisions in the law governing the conduct of the activity stating that, any person shall be prohibited from engaging in the activity of virtual assets, unless authorized by the competent authority. Such authorization shall be issued in accordance with legislation, all requirements and procedures shall be approved by the relevant body. Any person wishing to conduct the activity must be based in the jurisdiction and if a Person wishes to conduct the activity within the jurisdiction, he\ she must obtain prior approvals before starting their licensing process from the licensing authority.
Virtual assets activity shall be conducted within the limits, rules and controls specified in the authorization mentioned in the license. Certain virtual assets activities are subject to the control of the authority according to the law which include, among others, operation and management of virtual asset platform operations, exchange between virtual assets and domestic or foreign currencies and between one or more forms of virtual assets, transfer of virtual assets, custody and management of virtual assets or control over them, virtual asset portfolio services, virtual token offering and trading services.
The Authority may undertake, classification and identification of all activities and establish the rules and controls for their practice, or add any virtual asset-related activities practices or services to the activities, on the other way, whereas it shall make a list of Virtual Asset-related activities, business, practices, services and products that are not to be traded or conducted.
The relevant authorization may be waived only with the prior consent of the authority. However, any assignment in contravention shall be null and void. Moreover, the authority may, for reasons related to public interest or regulation of dealing and trading in virtual assets, take some actions and measures to suspend authorization, restrict, re-operate the execution of any controls or internal policies issued by the virtual asset service providers, or suspend the activity of any of the virtual asset service providers, in exceptional circumstances or in case a threat to the proper and regular functioning occurs, or suspend or cease dealing with any virtual assets, whether traded in the virtual asset platform or any operation related to their offering and issue, in exceptional circumstances or in case a threat to the proper and regular functioning occurs, in accordance with the laws.
By this, hopefully, all important issues in such special laws are clear. However, potential investors shall be more careful while indulging into such new investment venture as it is not-risk-free, but, full of many unavoidable risks.