Animoca Brands Middle East Advisory FZCO
Animoca Brands Middle East Advisory FZCO is incorporated in Dubai Multi Commodities Centre (the "DMCC") and is licensed by Dubai's Virtual Assets Regulatory Authority ("VARA") (VARA Licence No.: VL/04/02/001) to carry out the following regulated VA Activities and provide services to Qualified Investors and Institutional Investors (as such terms are defined in VARA regulations):
- Broker-Dealer Services; and
- VA Management and Investment Services.
VA Standards
We undertake a comprehensive due diligence on all the supported Virtual Assets. In our VA Standards assessment, we take into consideration:
- Its market capitalisation, fully diluted value and liquidity, and whether such metrics have trended downwards over time;
- Its design, features and use cases;
- Our need to comply with applicable laws, Regulations, Rules or Directives, including but not limited to those relating to AML/CFT, sanctions, securities, intellectual property, and whether there are any features of the virtual asset which may affect these;
- Regulatory treatment by global authorities relevant to Animoca Brands, including to ensure that the virtual asset has received the relevant regulatory approvals;
- Whether a Virtual Asset is prohibited by global authorities relevant to Animoca Brands in relation to the Virtual Asset;
- The security and immutability of the underlying DLT protocol;
- Its future development (e.g. "roadmap") as communicated by the Issuer and/or relevant developers;
- Whether it may be susceptible to price manipulation for any reason, and we implement transaction and trade monitoring tools as mitigation;
- Conflicts of interest (actual or potential);
- The background of its Issuer including, but not limited to, relevant experience in the Virtual Asset sector and whether it has been subject to any investigations or claims in relation to fraud or deceit;
- If the Virtual Asset represents rights to any other assets, the enforceability of such rights;
- Sufficient assets are available to satisfy any obligation with respect to any VA Activities;
- Initially and regularly review the terms and conditions of the Virtual Asset to ensure that they reflect, to the extent possible, the operation of any existing underlying physical market and avoid adverse impacts to such market (if applicable); and
- Review Virtual Asset terms and conditions on a periodic basis for appropriate correlation with any physical market to ensure such terms and conditions conform to standards and practices in that physical market (if applicable).
Risk Disclosure Statement
As a Virtual Asset Service Provider (VASP), Animoca Brands is committed to ensuring that clients are fully informed of the material risks associated with investing in or transacting with Virtual Assets.
Volatility Risk
Virtual Assets are subject to extreme volatility, and their value may fluctuate significantly. There is a possibility that Virtual Assets could lose some or all of their value due to market conditions or other factors beyond your control.
Irreversibility and Transferability Risk
Virtual Assets may not always be transferable. Some transfers of Virtual Assets may be subject to delays, restrictions, or technical issues. Additionally, certain transactions may be irreversible, meaning once they are confirmed, they cannot be undone, which may expose users to potential losses in case of errors or fraud.
Liquidity Risk
Virtual Assets may not always be liquid, and there may be difficulty in converting them into fiat currency or other assets. This lack of liquidity could result in substantial delays or losses when attempting to sell or exchange Virtual Assets.
Privacy and Transparency Risk
Some transactions involving Virtual Assets are not private and may be recorded on public Distributed Ledger Technologies (DLTs). While these records can offer transparency, they also expose transaction details that may compromise the privacy of individuals involved in the transactions.
Fraud, Manipulation, and Theft Risk
Virtual Assets are susceptible to fraud, manipulation, and theft, including through hacking, phishing attacks, or other targeted schemes. These risks may lead to the loss of funds, and Virtual Assets may not benefit from the same legal protections as traditional financial assets.
By participating in Virtual Asset activities, you acknowledge and accept these risks. It is essential to exercise caution and ensure that you fully understand the potential consequences before engaging in Virtual Asset transactions.