Chapter 4 Market Single Paper

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Chapter 4 Market Single Paper - Part 3

Q401. What must be done before a crypto asset can be listed on a licensed crypto asset exchange? *

1 point

Publish marketing prospectus on social media only.

Submit offer documentation to the Authority for approval.

Appoint a trustee but skip regulator notification.

Obtain local bank underwriting without Authority approval.

Q402. When is a crypto asset offering considered limited to qualified investors for listing? *

1 point

When marketed widely but sold only to institutions.

When the issuer decides post-listing to restrict buyers.

When custodian restricts transfers after issuance.

When offer documentation shows offering limited to qualified investors.

Q403. What additional approval is required if offering includes persons other than qualified investors? *

1 point

Prior approval of the Authority for the offering.

Only exchange notice is sufficient for wider offers.

Approval from the paying agent suffices.

Trustee consent replaces Authority approval.

Q404. How are crypto tokens categorised once listed and made available for trading? *

1 point

Categorisation left to investors individually.

Delayed categorisation until annual review.

Immediately categorised as regulated commodity tokens.

Automatically classed as security tokens always.

Q405. What must the offering person appoint before listing, unless the Authority otherwise decides? *

1 point

A crypto asset custodian for safekeeping and settlement.

A marketing agent to advertise the token.

Only a trustee in a foreign jurisdiction.

An auditor to publish weekly price forecasts.

Q406. Under what circumstance may the Authority waive the custodian appointment requirement? *

1 point

If the issuer requests a different custodian.

If investors sign non-liability waivers.

If the exchange charges higher listing fees.

If it decides custody arrangements are not required for that asset.

Q407. What must the offering person disclose regarding exchange-related costs? *

1 point

Only broker internal commissions, excluding exchange fees.

Trustee’s private fees withheld from investor notice.

Fees and commissions related to listing of crypto assets on the exchange.

Future proposed fees not yet approved.

Q408. Can a crypto asset be made available for trading on multiple licensed crypto exchanges? *

1 point

Yes — it may be listed and tradable on more than one licensed exchange.

No — only single-exchange listings are allowed.

Yes, but only with foreign regulator consent.

Only if the asset is a security token.

Q409. What information about the custodian must be included in the listing documentation? *

1 point

Only custodian’s marketing endorsements.

Trustee’s unrelated legal opinions.

Auditor’s fee schedule alone.

The appointed custodian’s identity and custody arrangements details.

Q410. Where may crypto assets be listed and made available for trading? *

1 point

On any peer-to-peer platform without licensing.

On social media trading groups only.

Exclusively on overseas exchanges.

Only on a crypto asset exchange licensed by the Authority.

Q411. Which action must precede making an asset available for trading on the exchange? *

1 point

Commencing public trading before application.

Disclosing fees only after trading starts.

Hiring a custodian after the first trade.

Submission of offer documentation to the Authority before listing.

Q412. What must the offering person disclose to investors regarding exchange listing arrangements? *

1 point

Only planned marketing strategies for listing day.

Internal developer team conflicts only.

Trustee’s private correspondence summaries.

All fees, commissions and the appointed custodian details.

Q413. Which immediate effect results when a crypto token is listed and tradable? *

1 point

It is exempt from Authority oversight.

It becomes classified as a regulated commodity token.

It becomes an unregulated utility token.

It automatically becomes a security token.

Q414. When must a custodian be appointed relative to listing approval? *

1 point

After first trading day without restriction.

Not required ever for commodity tokens.

Only if trading exceeds specified volume.

Prior to obtaining the Authority’s approval for listing, unless waived.

Q415. How must the offering person make fees and commission disclosures available? *

1 point

Hide fee schedules in private contracts only.

Post fees only after acceptance of offers.

Publish fees only upon investor request.

Disclose fees to investors and the market as part of offering documentation.

Q416. If a crypto asset is listed on multiple exchanges, who must accept cross-listings? *

1 point

A single exchange can unilaterally list it everywhere.

Only overseas exchanges decide cross-listing validity.

Custodian approval replaces exchange consent.

Each exchange and the Authority must accept or license listing.

Q417. When might the Authority require no separate custodian appointment? *

1 point

When investor numbers are below a threshold.

If the asset is intangible and not transferable.

If the issuer refuses to appoint any custodian.

If the exchange itself is authorised to act as custodian.

Q418. Which item is mandatory in offer documentation for exchange listing? *

1 point

Only company marketing slogans without technical terms.

Trustee’s private contracts excluded from disclosure.

Confidential backend code without summary.

Clear statement whether offering is limited to qualified investors.

Q419. What is the Authority’s role regarding crypto asset exchanges where listing occurs? *

1 point

Provide custodial services directly to all exchanges.

Function as exchange operator for each listing.

Set token prices prior to trading.

Licence exchanges and approve assets for listing and trading.

Q420. If assets are to be listed on multiple exchanges, what must the offering person ensure? *

1 point

Announce listing venues only after first trade.

Permit cross-listing without any disclosures.

Keep venue details confidential for competitive advantage.

Disclose all exchange venues and related fees and custody arrangements.

Q421. What must an offering person disclose if funds are retained until crypto assets are issued? *

1 point

A general disclaimer without details on timing.

Only confirmation that funds will be held privately.

A statement clarifying when and how subscriber funds will be used or returned.

No disclosure if the funds are held for under a month.

Q422. What must be specified when crypto assets are not issued immediately? *

1 point

Only estimated market price post-listing.

The arrangements and dates for using or refunding investor funds.

The company’s unrelated revenue targets.

Auditor approval of timing decisions.

Q423. What type of risk information must be disclosed to investors regarding the technology used? *

1 point

Only advantages of blockchain speed and efficiency.

Non-financial personal details of developers.

Price targets for technology upgrades.

Material risks related to technology adopted for issuing crypto assets.

Q424. Which of the following must an issuer include regarding technology risk? *

1 point

Full details of material risks linked to the crypto asset platform.

Only positive marketing highlights.

Risk disclosures are optional for private sales.

Brief notes without investor implications.

Q425. What must be disclosed about third-party software developers or providers? *

1 point

The extent and terms of their engagement.

Only their names without roles.

Developer nationality and educational history.

No disclosure if developers are external.

Q426. What must the statement clarify about source code or protocols? *

1 point

Material features and risks of the code or protocol used.

Proprietary programming syntax only.

Only public blockchain name.

Omit software information to maintain secrecy.

Q427. What additional future-related information must be disclosed? *

1 point

No need to disclose expected code updates.

Only future marketing plans.

Investor demographics and expected returns.

Possible changes to the software, protocols, and functionality of the crypto asset.

Q428. What must statements about software and protocols include? *

1 point

Only commercial branding elements.

Unverified social media reviews.

None, if tech is open-source.

All material features and investor implications of using the technology.

Q429. Why must technology-related disclosure be comprehensive? *

1 point

To promote exchange trading volume.

To satisfy developer curiosity.

To enable fast token sale closure.

To ensure investors can evaluate technology risks affecting their investments.

Q430. If funds are held with the offering person, what must be disclosed? *

1 point

Statement of unrelated capital projects.

Only internal bank details.

Marketing statement assuring fast returns.

Statement explaining how long and under what conditions funds are retained.

Q431. When do these disclosure requirements apply? *

1 point

Only after public trading begins.

Only for foreign token offerings.

Exclusively for government projects.

When crypto assets are offered, issued, or listed for trading.

Q432. Why must details about third-party developers be included? *

1 point

They ensure token price stability.

To satisfy Authority employment conditions.

They are required for marketing compliance.

They directly influence system reliability and security.

Q433. Which aspect of protocol engagement must the issuer disclose? *

1 point

Programming languages used.

Developer compensation agreements.

No disclosure if open-source protocol.

Scope, extent, and any future reliance on third-party developers.

Q434. What should be clarified in relation to investor rights in disclosure? *

1 point

Only expected resale value of tokens.

Market cap growth forecasts.

Historical software updates.

How technology and protocols affect investors’ rights and entitlements.

Q435. Which event triggers mandatory technology risk disclosure? *

1 point

Only when investors complain.

Every quarter regardless of changes.

Never for institutional buyers.

When new or modified technology affects crypto asset issuance.

Q436. Offer documents must include disclosures on funds, technology, and what else? *

1 point

CEO compensation details.

Exchange liquidity volume.

Government licensing fees.

Future changes to operations and investor rights.

Q437. Why must all relevant operational features be included in offer statements? *

1 point

To meet exchange marketing guidelines.

To comply with advertising standards only.

To shorten regulatory approval time.

To provide investors full transparency about technology and risks.

Q438. Why should the offering person monitor software and protocols post-issuance? *

1 point

To update token prices daily.

To comply with social media feedback.

For marketing alignment only.

To disclose material future changes affecting operations or investor rights.

Q439. What future aspect must be considered in functional disclosures? *

1 point

Irrelevant competitor product updates.

Only exchange listing duration.

Non-financial CSR commitments.

Expected or potential changes affecting asset performance or value.

Q440. Which details must be included in the disclosure of software and protocols? *

1 point

Only internal beta-test results.

Future marketing slogans.

Third-party press coverage.

All operational implications for investors using the asset.

Q441. What must disclosure state if rights are recorded in the crypto asset’s software or protocol? *

1 point

Only a high-level marketing summary of rights.

That records exist but not the technical method.

All rights and features are recorded and how recorded technically.

No disclosure; investors must verify themselves.

Q442. What disclosure is required regarding risk if software may deprive holders of rights? *

1 point

Promise software will never fail under any circumstances.

Provide only nontechnical vendor brochures.

Ignore software risks if insured elsewhere.

Explain any risk of holders losing rights due to software failures.

Q443. What must be disclosed when funds are retained prior to token issuance? *

1 point

Terms, timing, conditions for using or refunding retained funds.

Only total amount raised without usage plan.

That funds will be used at manager’s discretion.

A vague marketing timetable for product launch.

Q444. Which funding-condition detail must issuers disclose to subscribers? *

1 point

Only past project milestones irrelevant to funding.

Refund policy deferred until after issuance.

Milestones, refund mechanisms and schedule if funding targets not met.

No refund information if project is pilot.

Q445. What obligations regarding commitments and incentives must be disclosed? *

1 point

Only aggregate incentive spend without details.

Commitments, incentives, vesting schedules and beneficiary identities.

Incentives are proprietary and need not be disclosed.

Future incentives described informally to select investors.

Q446. Which financial details must be provided about the token project and issuer? *

1 point

Only management payroll numbers.

Future speculative revenue estimates without basis.

Marketing budget forecasts only.

Assets, liabilities, financial position, profits, and losses affecting token holders.

Q447. What must disclosure describe about investor access to tokens? *

1 point

How to access, hold, transfer and control tokens or electronic representations.

Only high-level statements that transfers are possible.

Transfers handled informally by issuer staff.

Access described as “user dependent” without guidance.

Q448. What technical documentation must be disclosed for electronic token representation? *

1 point

No technical details if open-source.

Confidential source code withheld from investors.

Only the wallet provider’s marketing slogan.

Requirements for maintaining an electronic portfolio or equivalent.

Q449. What contingency must be outlined for erroneous or fraudulent transfers? *

1 point

State that errors are irreversible without remedy.

No mention of fraud handling to preserve secrecy.

Redirect liability solely to investors by default.

Procedures for rectifying mistaken or fraudulent transfers and liabilities.

Q450. What must be specified regarding refund timing if funding conditions fail? *

1 point

Refunds “may” happen at issuer discretion.

Refunds only after two years automatically.

No refund procedures required for private sales.

When refunds occur and the refund mechanism and schedule.

Q451. What operational safeguards must the disclosure include for investor protection? *

1 point

Only marketing claims about uptime.

Insurance policy numbers without scope details.

No contingency planning is required.

Disaster recovery, backup, insurance and business continuity arrangements.

Q452. What IP information must the issuer disclose concerning the token project? *

1 point

Only the product name without IP details.

IP discussed only in private investor meetings.

Claim IP exists without legal proof.

Ownership, patent, copyright status, and any restrictions on use.

Q453. What must be disclosed about businesses involved in the project? *

1 point

Only future project plans with no operational history.

Irrelevant subsidiaries omitted intentionally.

Third-party press articles in lieu of facts.

Existing business operations and links to related projects or persons.

Q454. What management details must be provided about key personnel? *

1 point

Only CEO name and social media handle.

Anonymised team descriptions without specifics.

Contractor lists excluding executives.

Identities, roles, headquarters, and legal process contact details.

Q455. What must issuers disclose regarding related parties and conflicts? *

1 point

Related party deals only if over AED 10m.

Conflicts of interest may be omitted.

Only arm’s length transactions disclosed.

Any related party transactions, conflicts, or obligations affecting the offering.

Q456. What token supply control mechanisms must be disclosed? *

1 point

Only the initial total supply number.

Future burns disclosed verbally later.

No need to describe token economics.

Lock-ups, burn mechanisms, vesting, release schedules and applicable conditions.

Q457. What must be stated about escrow or third-party custodial arrangements? *

1 point

Custody indicated only by logo without terms.

No mention of escrow to preserve confidentiality.

Trustee name without contractual terms.

Existence, terms, rights, and procedures for release of funds or tokens.

Q458. What must issuers disclose about token valuation methodology? *

1 point

Only a target market price without methodology.

Valuation declared “proprietary” and withheld.

Use competitor prices as sole benchmark.

Valuation models, key assumptions and any independent valuations.

Q459. What legal arrangements must be included in disclosure documents? *

1 point

Only the issuer’s country of incorporation.

Arbitration mentioned vaguely without clauses.

Legal process deferred until case arises.

Governing law, jurisdiction, and dispute resolution mechanisms.

Q460. What must be revealed about security interests affecting tokens or issuer assets? *

1 point

Security interests only if involuntary.

Ignore small security interests regardless of impact.

Disclose none to avoid investor alarm.

Any mortgages, liens, or encumbrances exceeding materiality thresholds.

Q461. What must the offer include as a concise, non-technical key investor information document? *

1 point

Confidential development roadmaps for internal use.

A marketing brochure focused on price forecasts.

A short summary highlighting essential characteristics and risks.

A full legal prospectus only in technical language.

Q462. What fees or incentives must issuers disclose to investors? *

1 point

Only external exchange fees paid by investors.

Remuneration details may be omitted if internal.

Marketing commission estimates only.

All fees, incentives, compensations payable to developers or managers.

Q463. What affiliation must be disclosed between offering person and service providers? *

1 point

Affiliations may be disclosed privately on request.

No disclosure needed for third-party providers.

Any material relationship and disclosure of risks from such affiliations.

Only if relationship exceeds AED 10 million.

Q464. Which timetable details must the offer documentation include for funded projects? *

1 point

Timetable for milestones, project delivery and any refund arrangements.

Only marketing launch dates without deliverable details.

Confidential R&D schedules withheld from investors.

Nonbinding target years without specifics.

Q465. What must be disclosed about tokens reserved for personnel or contributors? *

1 point

Vesting schedules may be verbal and undisclosed.

Aggregate reserved tokens without vesting details.

Commitments, incentives, vesting, and incentive beneficiaries and timelines.

Only total dilution percentage number.

Q466. Which issuer financial information is required in security token disclosure? *

1 point

Marketing spend only, not financials.

Unverified speculative future revenue figures.

Assets, liabilities, profits, losses, and material statements affecting token holders.

Only high-level cash balance without liabilities.

Q467. What practical mechanics must issuers explain about tokens to investors? *

1 point

Transfers will be administered privately without instruction.

Access guidance given after purchase only.

Only that tokens are transferable in principle.

How to access, hold, transfer and control the electronic token representation.

Q468. What must be disclosed about erroneous, rejected or fraudulent transfers? *

1 point

Procedures, liabilities and investor remedies for mistaken or fraudulent transfers.

That such errors are irreversible without exception.

Issuer bears no responsibility ever.

Investor forums will discuss remedies informally.

Q469. When should refund mechanics be specified in the offer? *

1 point

Refunds are never mandatory for private offers.

Only state refunds possible without timing.

Refunds may be ad hoc after project failure.

If funding targets unmet, specify refund mechanism and completion schedule.

Q470. Which operational safeguards must be disclosed regarding continuity? *

1 point

Disaster recovery, backup, insurance and business continuity arrangements.

Only rudimentary system uptime percentages.

No operational safeguards required for tokens.

Insurance existence without coverage details.

Q471. What IP information must the offering documentation contain? *

1 point

Only brand names without ownership details.

IP details may be omitted to protect secrets.

Future patent filings without current status.

Q472. What must be revealed about entities involved in the project? *

1 point

Details of related businesses, persons, and any material links or conflicts.

Related entities can remain undisclosed.

Only third-party vendors need listing.

Related parties listed only if public companies.

Q473. Which management details must be provided in security token offers? *

1 point

Identities, headquarters, and contact addresses for principal management.

Anonymous management allowed.

Only CEO name without contact details.

Only technical leads’ social media links.

Q474. Which disclosure reduces the risk of undisclosed preferential transactions? *

1 point

Full disclosure of any material related-party transactions or conflicts.

Only disclose deals above AED 10m.

No disclosure if parties are minority shareholders.

Summaries provided informally.

Q475. What supply-control mechanics must be included in the disclosure? *

1 point

Burns and lock-ups only upon request.

Burn, lock-up, release schedules and conditions for token supply changes.

No supply mechanics needed.

Only initial supply figure.

Q476. What must be disclosed about escrow or custodial arrangements? *

1 point

Custodial names only without terms.

Custody may be implied.

Existence, terms, rights, procedures for release and investor protections.

Only trustee fees.

Q477. Which valuation information must be disclosed to investors? *

1 point

Market sentiment summaries suffice.

Only a target price.

Valuations may be withheld as proprietary.

Valuation models, key assumptions and independent valuations used.

Q478. What legal framework must be stated in token offering documents? *

1 point

Governing law, jurisdiction and dispute resolution mechanisms.

Dispute resolution deferred until litigated.

No legal recourse information needed.

Only issuer country name.

Q479. What must an issuer reveal regarding assets backing tokens? *

1 point

Only interests over AED 100m disclosed.

Encumbrances may be hidden.

Security details disclosed privately.

Any mortgages, liens or encumbrances affecting token-related assets.

Q480. Which statement correctly describes commodity tokens offered in the UAE? *

1 point

Not considered securities under UAE law and not government-backed.

Commodity tokens are always government guaranteed.

All commodity tokens are treated as securities.

Commodity tokens are banned from trading in UAE.

Q481. A custodian must create separate accounts for each client to ensure what crucial outcome? *

1 point

That the custodian can use client funds for operations.

To combine small clients into pooled anonymous accounts.

That clients can access other clients’ holdings freely.

That each account contains detailed ownership and transfer records.

Q482. How must crypto assets be held relative to the custodian’s own assets? *

1 point

Kept informally without formal segregation records.

Mixed with custodian’s assets to improve custody efficiency.

Segregated from custodian’s assets in a manner that is identifiable.

Held only as part of the custodian’s general ledger.

Q483. What accounting obligation must custodians maintain regarding total client crypto holdings? *

1 point

Use issuer reports instead of own records.

Record only client balances upon monthly audits.

Keep approximate totals without precise reconciliation.

Hold amounts equal to aggregate amounts recorded in client accounts.

Q484. Under normal operations, when may a custodian transfer client crypto assets? *

1 point

To related parties on a handshake basis.

At trustee discretion without client notification.

Whenever the custodian deems market conditions favourable.

Only upon the client’s express instruction or written authorization.

Q485. Which transfer direction is prohibited without clear client instruction and authority? *

1 point

Movement between client subaccounts under custodian control.

Transfers to a third party or an issuer without written client consent.

Transfers to custodian’s internal reserve accounts permitted.

Transfers to another client when agreed upon orally.

Q486. What must custodians ensure about accounts they control for clients? *

1 point

Trustees manage access without client consent.

The custodian may access anytime for portfolio rebalancing.

Internal teams may operate accounts without audit logs.

Access occurs only on client instruction and not on custodian discretion.

Q487. What requirement relates to cryptographic keys and equivalents for custody? *

1 point

Publish private keys to investors for transparency.

Hold keys in plaintext on public servers.

Delegate key custody irreversibly to third parties without agreements.

Store cryptographic keys or equivalents securely and control client rights access.

Q488. Why must custodians avoid enabling a single individual to control both custody and access? *

1 point

Single control is acceptable if signed off by CEO.

Because it speeds up transaction processing unnecessarily.

It reduces operational overhead and compliance tasks.

To prevent concentration risk and potential internal fraud or misuse.

Q489. What action must custodians plan for if cryptographic systems become compromised? *

1 point

Only notify the market but not individual clients.

Replace systems without explaining past breaches.

Wait until investors discover the issue and then advise.

Procedures for stopping transactions, restoring systems, and notifying affected clients.

Q490. Which practice is forbidden due to its risk to client property rights? *

1 point

Consolidating keys for clients who consented in writing.

Pooling small accounts for operational convenience with full disclosure.

Using omnibus accounts but posting daily client statements.

Aggregating client holdings in a way that compromises individual client entitlements.

Q491. How must custodians manage conflicts of interest in their activities? *

1 point

Allow conflicts if they benefit the custodian financially.

Ignore conflicts where clients are institutional only.

Delegate conflict resolution to external consultants only.

Avoid and disclose conflicts; obtain approvals and mitigate actual conflicts.

Q492. What authority may custodians request relating to ownership registers? *

1 point

Keep only paper ledgers stored offline.

Refuse any register obligations to reduce liability.

Delegate register maintenance to investors only.

Maintain the final register of ownership on a digital network or database.

Q493. When may a custodian use client crypto assets for its own account? *

1 point

When trustee approval is given verbally.

If market conditions permit profitable lending.

Whenever the custodian needs liquidity for operations.

Only if expressly authorised in writing by the client.

Q494. What ongoing disclosure obligation do custodians owe to clients? *

1 point

Disclose nothing to preserve operational secrecy.

Supply only annual audited statements without detail.

Provide summaries only to institutional clients.

Provide information about custody arrangements and risks upon request.

Q495. Which control helps prevent unauthorised transfers from client accounts? *

1 point

Permit phone authorisation without multi-factor checks.

Let trustees sign off on all client transfer requests.

Allow email requests without verification for speed.

Require written client documentation for transfers and robust authentication.

Q496. What must custodians arrange to protect clients against loss? *

1 point

No insurance — clients accept full risk always.

Only internal reserve funds for high-net-worth clients.

Outsource insurance decisions to asset issuers.

Insurance or guarantee arrangements and contingency plans as appropriate.

Q497. What recordkeeping obligation ensures transparency and regulatory compliance? *

1 point

Rely on third-party summaries without internal logging.

Keep records only when requested by the Authority.

Delete logs older than thirty days routinely.

Maintain accurate transaction, access, and custody records for audit and reconciliation.

Q498. When may a custodian exercise discretion on behalf of a client? *

1 point

When market makers request action on behalf of the client.

Whenever the custodian judges it beneficial.

If the trustee signals approval implicitly.

Only when the client has explicitly authorised such discretion.

Q499. Which structural control is essential to limit operational failures risk? *

1 point

Use single key for all client accounts to simplify operations.

Outsource reconciliation without custodian oversight.

Centralisation of all functions under one operations manager.

Separation of custody operations, access control, and reconciliation responsibilities.

Q500. What must custodians do if a conflict of interest arises that cannot be avoided? *

1 point

Resolve conflicts internally without regulator notification.

Ignore minor conflicts until annual review.

Divert client assets to mitigate perceived conflicts.

Disclose conflict promptly to the Authority and implement mitigation measures.

Q501. Unless restricted to qualified investors, who must conduct fundraising for crypto assets? *

1 point

Any private individual with investor consent only.

A company registered in any foreign jurisdiction.

A person holding a fundraising licence issued by the Authority.

An unregulated crowdfunding platform abroad.

Q502. What must the fundraising licence include for a platform operator to be authorised? *

1 point

Only permission to market to overseas investors.

A general merchant licence without crypto scope.

Solely a trustee appointment confirmation.

Approval to operate a crypto fundraising platform in the UAE.

Q503. Fundraising may be restricted to which investor group without full licence obligations? *

1 point

Any retail investor without restrictions.

Knowledgeable and capable qualified investors only.

Only institutional investors above AED 50m.

Family and friends by informal agreement.

Q504. What is the stated maximum amount a single client may invest without prior Authority amendment? *

1 point

AED 250,000 or its equivalent.

AED 1,000,000 without restriction.

AED 50,000 exempt from disclosure.

Unlimited amount permitted by default.

Q505. Who can amend the maximum investment amount per investor? *

1 point

The issuing company alone may change it.

Local banks set the maximum.

The Authority may increase or change the permitted amount.

Trustee consensus replaces Authority role.

Q506. Which activity is explicitly prohibited by fundraising platforms unless Authority approves? *

1 point

Advertising the offering on social media only.

Publishing non-binding whitepapers.

Hosting investor Q&A webinars pre-launch.

Conducting any trading or exchange of the issued crypto assets.

Q507. Which funds may be accepted for fundraising according to the rules? *

1 point

Any funds regardless of source without checks.

Cash contributions only below AED 10,000.

Only funds not susceptible to money laundering or terrorism financing.

Only stablecoin transfers are acceptable.

Q508. What must the person licensed for fundraising ensure about the funds raised? *

1 point

Funds immediately allocated to project founders.

Funds held entirely offshore without transparency.

Funds used at manager discretion without reporting.

Funds are handled per disclosure and AML/CFT obligations.

Q509. Which legal forms are acceptable applicants for licence to operate a crypto fundraising platform? *

1 point

Any overseas startup without UAE incorporation.

Sole proprietorships located overseas only.

Informal groups of developers without registration.

Exchange licensed in UAE or a UAE company under Commercial Companies Law.

Q510. What must platform policies and procedures align with? *

1 point

Only internal marketing strategies of the platform.

Bank operational manuals instead of crypto rules.

International norms without local adjustments.

The technological standards and regulations outlined in section 8.10.

Q511. What may the Authority require from fundraising platform operators additionally? *

1 point

Only a one-page business plan without capital proof.

No financial safeguards beyond registration.

Sponsorship letters from unrelated firms.

Additional financial resources or guarantees to manage client risk.

Q512. How must fundraising platforms treat contributions potentially derived from criminal activity? *

1 point

Accept them then later investigate.

Allow deposit but restrict withdrawals.

Delegate screening to investors themselves.

Reject or return them and apply AML/CFT procedures.

Q513. When can fundraising platforms conduct trading or exchange activities? *

1 point

Immediately upon licence issuance by default.

After a promotional period of six months.

Whenever founders agree to commence trading.

Only if the Authority specifically permits such activity.

Q514. Prior to licensing, what must an applicant demonstrate about procedures and documentation? *

1 point

Only a marketing pipeline for token sales.

Minimal paperwork acceptable for startups.

Informal technical descriptions without evidence.

Compliance with regulations, policies and required technical standards.

Q515. What is a required investor protection safeguard for fundraising platforms? *

1 point

Only email-based investor confirmations without KYC.

No client safeguards for qualified investors.

Reliance solely on third-party vendor assurances.

Procedures addressing client onboarding, AML, and fund custody.

Q516. On what basis may the Authority judge an application for a fundraising platform licence? *

1 point

Popularity of the platform’s marketing campaign.

Fundraising speed and convenience only.

Local political endorsements exclusively.

Public interest, adequacy of safeguards and compliance with objectives.

Q517. Which prohibition applies to fundraising persons regarding trading issued crypto assets? *

1 point

They must always serve as the primary exchange for the assets.

They can trade freely if investors consent.

They may trade on foreign exchanges without restriction.

They must not conduct trading or exchange of issued crypto assets unless authorized.

Q518. What evidence may the Authority request about a fundraising applicant’s technological capability? *

1 point

Only company brochures without technical detail.

Marketing testimonials in lieu of technical proof.

Audited investor lists only.

Evidence of systems, security, and readiness to operate platform safely.

Q519. If offering is limited to professional investors, what fundraising rule relaxes? *

1 point

All regulations are automatically exempted.

Platforms may operate without any governance.

Professional investors require no KYC checks.

Some disclosure/licensing obligations may be reduced for professional investors.

Q520. If available market providers cannot cover client risk adequately, what can the Authority require? *

1 point

Immediate shutdown of all fundraising activities forever.

Transfer of all client funds to foreign banks.

That clients sign waivers relieving platform responsibility.

Additional financial resources or guarantees from platform operators.

Q521. Operating a crypto asset exchange in the UAE requires which mandatory approval? *

1 point

Recording and reporting trading and transaction data accurately.

Advertising new coin offerings to investors.

A licence from the Authority.

Informal registration with a private bank.

Q522. Exchanges must maintain technological systems that primarily enable which key function? *

1 point

Recording and reporting trading and transaction data accurately.

Advertising new coin offerings to investors.

Tracking client profit projections.

Publishing token marketing whitepapers.

Q523. Why must crypto exchanges provide real-time transaction data to the Authority? *

1 point

To allow monitoring of trades, detection of abuse, and ensure transparency.

To publish investor rankings publicly.

To promote listed tokens globally.

A licence from the Authority.

Q524. What key role do exchange surveillance programs play? *

1 point

Detecting and preventing market abuse or manipulative practices.

Marketing new crypto listings faster.

Enforcing tax compliance among users.

Limiting foreign investor participation.

Q525. What obligation continues throughout an exchange’s operation under licence? *

1 point

How to access, hold, transfer and control the electronic token representation.

Advertising new coin offerings to investors.

Compliance with all licensing conditions on an ongoing basis.

Temporary adherence during start-up phase.

Q526. Exchanges must establish controls specifically targeting what illegal activity? *

1 point

Recording and reporting trading and transaction data accurately.

Money laundering and terrorism financing.

Insider marketing coordination.

Excessive algorithmic trading.

Q527. Which operational scope is limited for persons employed by an exchange? *

1 point

They must act only in regulated exchange activities.

They can invest freely in all listed assets.

They may promote unrelated external ICOs.

They can trade derivatives privately for profit.

Q528. What competency must be ensured for employees working in crypto exchanges? *

1 point

Adequate knowledge and experience in securities, commodities or crypto assets.

Social media proficiency to market offerings.

Only technical skills unrelated to finance.

Minimal education requirements suffice.

Q529. Which restriction applies to exchanges regarding their role in investment outcomes? *

1 point

They may not hold investment purpose or provide investment advice.

They can advise retail clients informally.

They may offer guaranteed returns.

They must act as brokers for listed assets.

Q530. How are investor rights protected during exchange operations? *

1 point

Through systems ensuring transparent access and fair trading.

By delegating disputes to private boards.

By offering guaranteed minimum prices.

By limiting order visibility.

Q531. Before commencing operations, what must a crypto exchange establish? *

1 point

Rules, controls, and procedures approved by the Authority.

Only marketing strategies for token listings.

Informal trading policies decided by users.

Promotional codes for members.

Q532. What must exchanges ensure about the accessibility of their services? *

1 point

Clear rules and public access information.

Selective access for high-net-worth clients only.

Anonymous trading without registration.

Hidden operating procedures.

Q533. Surveillance systems on exchanges are designed to detect what? *

1 point

Market manipulation or abusive trading behavior.

Blockchain latency during transaction mining.

Tax evasion among retail clients.

Only price mismatches between tokens.

Q534. Exchanges must submit trade information to the Authority in what manner? *

1 point

Regular, accurate, and prompt reporting.

Only annually on demand.

Randomly when convenient.

Only if losses exceed 10%.

Q535. What obligation do exchanges have regarding trading and transaction records? *

1 point

Maintain and make them available for Authority review.

Delete them monthly for privacy reasons.

Transfer them to blockchain miners.

Archive only retail transaction records.

Q536. Exchanges can use crypto assets in their custody solely for what? *

1 point

Regulated exchange activities linked to client transactions.

Proprietary trading for profit.

Marketing sponsorships and giveaways.

Arbitrage across multiple markets.

Q537. Exchanges must provide investors with what public documentation? *

1 point

Only technical node performance reports.

A risk statement outlining exchange risks.

Confidential client trade data.

Marketing whitepapers for token issuers.

Q538. Before listing, what must an exchange publish and make accessible to investors? *

1 point

Detailed disclosure of its operating rules.

Private user interface design mock-ups.

Only trading fees without policies.

Press releases on new tokens.

Q539. What internal system must exchanges maintain for investor complaints? *

1 point

Dispute settlement mechanisms ensuring fair resolution.

Automated ticketing for marketing queries.

Peer voting on complaint outcomes.

Annual grievance review without timelines.

Q540. Which principle underlies all licensing conditions for crypto asset exchanges? *

1 point

Prioritizing proprietary trading profit.

Market integrity, transparency, and investor protection.

Enhancing marketing reach for issuers.

Maximizing trading turnover volumes.

Q541. What must exchanges adopt to ensure fair and orderly trading avoiding priority abuse? *

1 point

Permit members to trade before public orders.

Enable founders to receive execution priority occasionally.

Procedures preventing priority or preferential execution of some users’ trades.

Allow priority for preferred institutional clients selectively.

Q542. What must exchanges disclose to users in advance of their submission? *

1 point

Trustee commission schedules excluding retail fees.

Only yearly fee summaries after trading commences.

The commissions and fees for trading on the crypto asset exchange.

Fees verbally when requested by large clients.

Q543. Which controls must exchanges adopt to ensure resilience and continuity? *

1 point

Only monthly backups without recovery procedures.

Industry-accepted resilience measures including disaster recovery and backup plans.

No resilience requirements for new exchanges.

Ad hoc recovery relying on third parties informally.

Q544. Exchanges must provide accurate trading reports to whom and why? *

1 point

To unrelated third parties for advertising.

Only to paying agents for settlement.

To the Authority to enable supervision and market monitoring.

To marketing partners for investor outreach.

Q545. What must an exchange disclose about hacking or vulnerabilities? *

1 point

Disclosed only to affected users privately.

Any hacking vulnerabilities and measures to prevent or mitigate them.

Only disclosed if losses exceed AED 1 million.

Never publicly disclosed.

Q546. Which item is required in a listing application for a crypto asset? *

1 point

Only marketing materials and price targets.

A single investor endorsement letter.

Initial and ongoing criteria for selection and the underlying protocol.

Informal founder declarations without technical proof.

Q547. What must listing applicants disclose about fees or compensation? *

1 point

Compensation required only post-listing.

Fees may be kept confidential.

Any fees or compensation paid by issuer, promoter, or sponsor.

Only fees charged to retail investors.

Q548. What risk aspect must the Authority evaluate for a crypto asset listing? *

1 point

Tax status of token holders.

Availability of trustee meeting minutes.

Any party’s hacking vulnerabilities and connectivity risks to the asset.

Only the issuer’s marketing capacity.

Q549. Which capability must an applicant demonstrate about the crypto assets? *

1 point

Traceability optional for regulated tokens.

Traceability and controls preventing money laundering.

Only approximate traceability via third parties.

Traceability limited to custodial records.

Q550. What power may the Authority impose on trading of a listed crypto asset? *

1 point

Restrictions for a limited period to protect market integrity.

No power to restrict trading once listed.

Permanent trading bans without assessment.

Automatic suspension for every token.

Q551. What must a person obtain before carrying out financial activities in UAE for regulated tokens? *

1 point

Only a local bank’s endorsement.

A licence or prior approval from the Authority.

Trustee verbal approval.

No licence if activities are cross-border.

Q552. What power does the Authority retain regarding financial activities? *

1 point

It can prescribe directions limiting financial activities from time to time.

Delegates all direction powers to exchanges.

Must accept all foreign activities.

Can only advise, not direct.

Q553. Who must notify the Authority when applying for a licence to perform financial activities? *

1 point

The person applying for the licence in the UAE.

Only the trustee may notify.

Authority finds applicants without notification.

No notification required if foreign.

Q554. Who decides on the applicability of regulations to financial activities for regulated tokens? *

1 point

The Authority will decide applicability and licensing requirements.

Local courts decide.

Market operator decides.

Issuer chooses rules.

Q555. What is prohibited without Authority approval? *

1 point

Conducting any financial activities for security or regulated commodity tokens.

Running advertising campaigns.

Providing whitepapers freely.

Hosting educational webinars.

Q556. Which activity could require licensing when related to security tokens? *

1 point

Investment advice, portfolio management, or dealing in regulated tokens.

Selling merchandise.

Publishing academic articles.

Hosting social meetups.

Q557. On what basis will the Authority assess financial activity licence applications? *

1 point

Relying exclusively on foreign approvals.

Based on applicability of regulations and the nature of activities.

Based on company name.

Considering only funding raised.

Q558. Can foreign entities provide financial activities without a UAE licence? *

1 point

Yes — exempt.

If limited to institutions.

No — must seek Authority approval when activities relate to regulated tokens.

Only if partnering with a UAE bank.

Q559. May the Authority allow temporary or conditional activity before full licensing? *

1 point

Never permitted.

Authority may permit limited activities subject to its directions.

Temporary permits by market operators.

Trustee decides.

Q560. What recourse if a firm conducts regulated activities without a licence? *

1 point

Allowed to continue under self-certification.

Ignored if investors consent.

Only civil courts can intervene.

Authority may take enforcement actions and restrict activities.

Q561. Brokerage activity regarding crypto assets includes which of the following beyond exchange members? *

1 point

Solely marketing tokens to institutional investors.

Managing developers’ code repositories for tokens.

Receipt and transmission for transmission and settlement of crypto assets.

Only providing investment advice to retail investors.

Q562. Who may the Authority consult regarding maintaining records of ownership for distributed systems? *

1 point

Trustees always maintain these records exclusively.

Investors individually maintain such ownership records.

Only the token issuer decides record formats alone.

The unlisted person must consult with the Authority.

Q563. What must a licensed person consider when assessing suitability for a non-qualified investor? *

1 point

Only the investor’s age and nationality.

Trustee’s assessment replacing licensee responsibility.

Whether investor lacks two-year ownership record or expertise.

Whether the investor previously invested internationally.

Q564. What must the licensed person be satisfied the investor understands before allowing purchase? *

1 point

That investor will be reimbursed by the issuer.

That investor will gain immediate liquidity.

That the investor is ready to lose all invested funds.

That investor expects guaranteed capital protection.

Q565. What financial capability must the licensed person confirm for non-qualified investor suitability? *

1 point

Minimum AED 250,000 cash balance only.

No requirement for financial resource assessment.

Sufficient financial resources to bear complete loss of investment.

Ownership of a primary residence only.

Q566. Which staffing requirement must licensed persons satisfy to perform crypto financial activities? *

1 point

Only legal counsel is required, no technical staff.

Use volunteer developers to reduce costs.

Maintain necessary technical staff to practise crypto activities per Section 8.10.

Outsource technical functions without oversight indefinitely.

Q567. Licence applicants must show compliance with which standards before approval? *

1 point

Trustee operational guidelines only.

Marketing best practices instead of technical standards.

Only international standards without local alignment.

The technical requirements prescribed by the Authority.

Q568. If a licence requires a guarantee, what may the Authority additionally require? *

1 point

The trustee to assume the guarantor role.

No further financial proof beyond guarantee.

Additional financial resources be retained by the applicant.

That the applicant publish marketing forecasts.

Q569. Can a foreign person perform financial activities related to regulated tokens in the UAE freely? *

1 point

Yes — foreign firms are exempt automatically.

Yes, if they trade only outside UAE time zones.

No — they must obtain a licence or approval from the Authority.

Only if sponsored by a local investor.

Q570. What evidentiary period is relevant when checking investor records for suitability? *

1 point

Ten years of unrelated investment history.

The last month’s social media activity.

The last two years’ record of ownership or expertise.

Only current employment status.

Q571. What net equity threshold defines an individual as a qualified investor in the UAE? *

1 point

Net equity including main residence of AED 1 million.

Net equity excluding residence of AED 1 million.

Net equity excluding main residence amounting to AED 4 million.

Net equity excluding residence of AED 250,000.

Q572. What minimum annual income qualifies an individual as a qualified investor? *

1 point

Annual income of AED 250,000 minimum.

Annual income not less than AED 1 million.

Annual income above AED 4 million only.

No income requirement applies to individuals.

Q573. Which declaration must an individual make to be qualified investor? *

1 point

They will trade only once per year.

They will delegate all decisions to a trustee.

They have adequate knowledge and experience in investments.

They accept issuer’s marketing materials only.

Q574. How may an individual satisfy the representation requirement for qualification? *

1 point

Be represented by any overseas unlicensed advisor.

Be represented by a social media influencer.

Be represented by an entity licensed by the Authority.

Self-certify without any representation.

Q575. How does the Authority accept submissions for qualified investor status? *

1 point

Only by paper forms submitted in person.

Via social media direct messages.

Only through trustees’ letters annually.

Via an electronic form published on the Authority’s website.

Q576. If an investor lacks two years’ records, what must the licensed person ensure? *

1 point

Allow purchases with no further checks.

Require investor to wait five years.

That the investor demonstrates adequate knowledge and is financially able to bear losses.

Accept the investor automatically as qualified.

Q577. Who bears primary responsibility to be satisfied of investor suitability? *

1 point

The exchange manager does it informally.

The investor alone bears all responsibility.

The licensed person providing the financial activities in the UAE.

The Authority certifies investor suitability directly.

Q578. The licensed person’s technical staff must conform to standards specified in which section? *

1 point

Section 7.1 derivatives only.

Unspecified internal policies without regulatory alignment.

An unrelated external code of conduct.

Section 8.10 technical standards of the Regulation.

Q579. If the financial resources appear inadequate, what action may the Authority take regarding applicants? *

1 point

Approve licence without financial scrutiny.

Outsource assessment to third parties only.

Automatically refuse licence with no remediation options.

Require additional guarantees or financial resources to be retained.

Q580. Which investor characteristic is essential for non-qualified investors before granting access? *

1 point

Expectation that investments are insured by the state.

Only a minimum age requirement is necessary.

Evidence of a diversification strategy alone suffices.

Confirmation they accept the right to lose their entire investment.

Q581. If an exchange arranges issuance after investor subscription, what must it adopt to avoid illicit issuance? *

1 point

Delegate pricing entirely to market makers abroad.

Controls to prevent issuance of crypto assets at prices determined solely by issuer.

Allow issuer to set prices post-subscription without oversight.

Permit secondary trading immediately to stabilise pricing.

Q582. Which control is mandatory to combat money laundering in crypto brokerage and exchange activities? *

1 point

Adopt risk-based AML controls and transaction monitoring for crypto activities.

Require clients to sign a generic acknowledgement only.

Rely on third parties without internal monitoring.

Maintain AML records only on demand.

Q583. Exchanges must not allow use of crypto assets to evade which measure? *

1 point

Controls that prevent adopting such measures to avoid AML obligations.

Market surveillance for high-frequency trading.

Regular internal audits by the compliance team.

KYC for institutional counterparties only.

Q584. How must firms treat clients deemed high risk under client due diligence? *

1 point

Treat them as high risk for due diligence and apply enhanced measures.

Treat them as standard risk with simplified checks.

Exempt them from CDD if institutional.

Refer them to external brokers only.

Q585. What must a firm maintain regarding records for crypto assets transactions? *

1 point

Accurate records linking transactions to client identities for audit and investigation.

Only summary statistics for monthly reports.

Transaction logs kept only for internal use.

Delete old records to avoid storage costs.

Q586. Under deposit rules, how must client deposits and withdrawals be conducted? *

1 point

Through an authorised financial institution or designated bank account.

Directly to issuer wallets without bank mediation.

Via third-party peer addresses without verification.

Using personal bank accounts of directors.

Q587. What action must be available when a client provides incomplete or suspicious information? *

1 point

The firm may suspend or terminate the account after review.

The firm must always allow continued trading.

The firm should close account immediately without notice.

The firm should ignore until regulator requests.

Q588. Why must an exchange obtain sufficient client contact information at onboarding? *

1 point

To verify identity, perform CDD, and contact clients about suspicious activity.

Solely for marketing and promotional outreach.

To delegate legal responsibilities to clients.

Only to issue quarterly newsletters.

Q589. What restriction applies to accepting third-party transfers in client accounts? *

1 point

Avoid accepting third-party funds except as permitted and verified under CDD.

Accept all third-party funds to enhance liquidity.

Convert third-party funds without verification.

Automatically reject any third-party funds always.

Q590. Which monitoring strategy must a firm adopt for suspicious transactional patterns? *

1 point

Ongoing monitoring with alerts for unusual volumes or patterns.

Only annual reviews for suspicious activity.

Manual checks upon customer complaint only.

Rely solely on external auditors post-factum.

Q591. How must firms treat cross-border crypto flows from high-risk jurisdictions? *

1 point

Apply enhanced due diligence and possibly restrict transactions.

Treat them the same as domestic transactions.

Automatically forward to downstream exchanges.

Accept without verification if from OTC desks.

Q592. For client fiat related to crypto, what is the authorised handling method? *

1 point

Use a designated bank account with an authorised financial institution.

Allow transfers to executive personal accounts.

Permit unbanked cash handling for convenience.

Use overseas unregulated wallets exclusively.

Q593. What must a firm do if a transaction appears linked to criminal proceeds? *

1 point

File a suspicious activity report and freeze relevant assets.

Inform the client and allow continued trading.

Immediately return funds without reporting.

Ignore unless regulator requests later.

Q594. What resilience measures must platforms adopt for critical systems? *

1 point

Disaster recovery, backup arrangements and industry-accepted resilience practices.

Only daily offsite backups without recovery tests.

Ad-hoc manual recovery procedures only.

No resilience measures for startups mandated.

Q595. What infrastructure must firms implement to support AML and market surveillance? *

1 point

Systems for real-time monitoring, logging, and prompt reporting to the Authority.

Basic spreadsheets updated weekly for reporting.

Paper logs for transaction summaries only.

Outsourced reports without local monitoring.

Q596. What must firms establish to evaluate exposure to financial crime? *

1 point

Maintain a risk assessment and procedures to evaluate potentially suspicious transactions.

Risk assessment only at licensing then never updated.

Rely on generic industry risk scores without local assessment.

Use client self-assessments only.

Q597. Why might a firm impose transaction limits for certain clients? *

1 point

To control risk exposure pending enhanced due diligence or suspicion.

To reduce counterparty liquidity intentionally.

To favour certain institutional clients unfairly.

To hide unusual activity from auditors.

Q598. What ongoing personnel measure should firms maintain for AML effectiveness? *

1 point

Regular compliance training and updates for staff on AML/CFT.

One-time onboarding training only.

Outsource compliance entirely with no internal training.

Training only for executives, not operations staff.

Q599. How should firms handle crypto assets tied to uncertain provenance? *

1 point

Suspend transactions, investigate provenance, and possibly refuse to transact.

Immediately resell them in OTC markets without checks.

Convert them to stablecoins without customer consent.

Accept and delay investigation indefinitely.

Q600. What is the required timeliness for reporting matters affecting crypto assets to the Authority? *

1 point

Prompt and accurate disclosure as soon as practicable after detection.

Only in annual compliance reports.

After thirty business days regardless.

Only when clients complain publicly.

Q601. What capability must licensed persons provide to the Authority on request regarding ownership and trading?

1 point

Quarterly summarized ownership reports only to the Authority.

Marketing forecasts of trading volumes on request.

Real-time information related to ownership and trading in crypto assets.

Only anonymized trade statistics on a monthly basis

Q602. Which standard must licensed persons adopt for technology applied to crypto assets?

1 point

Only local vendor recommendations without international benchmarking.

Best international standards regarding cyber security and data protection.

Marketing-driven technology roadmaps prioritised by issuers.

Basic IT practices with no security emphasis.

Clear selection

Q603. What must firms do regarding system testing and external audits for critical technology?

1 point

Test systems only when a breach occurs and then report.

Rely exclusively on vendor self-certifications without testing.

Carry out regular internal and external testing and implement remediation.

Conduct annual user surveys instead of technical tests.

Clear selection

Q604. When outsourcing technology, what obligation does the licensed person retain?

1 point

Transfer all responsibility and remove oversight duties.

Accept third-party assurances without verification.

Allow providers to operate without contractual SLAs.

Maintain oversight, audit rights, and notify Authority of material breaches.

Clear selection

Q605. What should licensed persons ensure when appointing third-party technology providers?

1 point

Appoint any low-cost provider to reduce expenses

Use internal volunteers instead of professional vendors.

Select providers without background checks if offshore.

Provider has sufficient skills and experience to ensure compliance.

Clear selection

Q606. What must a firm do if its licensed platform is materially compromised by cyber security events?

1 point

Wait until annual review before informing the regulator.

Disclose breaches only to affected users, not the Authority

Attempt private remediation without official notification.

Notify the Authority promptly and disclose material breaches or losses.

Clear selection

Q607. What real-time capability must exchanges provide regarding trading monitoring?

1 point

Weekly uploads of trading data to the Authority suffice.

Monthly snapshots of trading activity only.

Reporting only when requested in writing within 90 days.

Systems to record and report trading transactions promptly for supervision.

Clear selection

Q608. What data principle must licensed persons follow when handling user information?

1 point

Share raw user data freely with third parties.

Store data unencrypted for quicker access.

Keep identity data anonymous to the Authority always.

Implement internationally accepted data protection and privacy standards.

Clear selection

Q609. What must a licensed person obtain from outsourced providers upon request?

1 point

Only informal verbal confirmations of uptime.

Marketing collateral about provider capabilities only.

No documentation to minimise administrative burden.

Audit and review evidence, including tests and results conducted by third parties.

Clear selection

Q610. How must firms manage software upgrades to reduce operational risk?

1 point

Deploy updates immediately without testing to be first to market.

Never update software to avoid compatibility issues.

Only update in response to investor complaints.

Test updates, schedule deployments, and notify the Authority of material impacts.

Clear selection

Q611. What powers may the Authority exercise to ensure compliance with crypto regulations?

1 point

Only issue non-binding guidance without inspection authority.

Delegate all oversight to exchanges without intervention.

Act only when courts request regulatory action.

Supervise, control, inspect and take necessary actions against offering persons.

Clear selection

Q612. Can the Authority investigate alleged violations discovered through inspections?

1 point

No — investigations must be conducted by police only.

Only after a formal complaint by a market participant.

Only for offences exceeding monetary thresholds.

Yes — it may investigate violations and order corrective actions.

Clear selection

Q613. Which sanction may the Authority impose on non-compliant entities?

1 point

Only issue a public advisory without operational impact.

Fine but cannot suspend market access.

Refer the matter to foreign regulators only.

Suspend or revoke licences and take necessary regulatory action.

Clear selection

Q614. What can the Authority require from regulated entities during oversight?

1 point

Only provide summaries of corporate governance.

Submit marketing plans instead of operational records.

Disclose confidential client data publicly.

Provide records, documents, and information relevant to investigations or inspections.

Clear selection

Q615. What remedial measures may the Authority direct a licensee to implement?

1 point

Only request voluntary improvements without enforceability.

Require marketing revisions only.

Limit enforcement to minor procedural tweaks

Any actions necessary to remedy deficiencies, including controls, audits, and staffing changes.

Clear selection

Q616. When granting or refusing approvals, what primary consideration will the Authority weigh?

1 point

The popularity of the applicant among investors.

Only the applicant’s marketing capacity.

International pressures irrespective of UAE law.

The public interest and the purposes of the regulations.

Clear selection

Q617. Can complaints trigger Authority inspections and enforcement actions?

1 point

No — complaints are handled only by exchange dispute systems.

Only formal lawsuits can trigger inspections.

Complaints are archived without action unless collective.

Yes — the Authority may investigate complaints and undertake inspections.

Clear selection

Q618. What interim actions may the Authority take while investigating?

1 point

Only notify the firm and take no interim measures.

Transfer operations to a private operator automatically.

Force immediate liquidation without hearing.

Order provisional suspensions, trading restrictions, or require immediate remediation.

Clear selection

Q619. How may the Authority act when cross-jurisdictional issues arise?

1 point

Refuse any cooperation with foreign regulators.

Outsource all investigations abroad exclusively.

Share confidential investigative materials publicly.

Cooperate with domestic and international authorities as necessary.

Clear selection

Q620. What enforcement outcomes may the Authority seek against violators?

1 point

Only public admonitions without legal force.

Private settlements mandatory without public disclosure.

Referral to market participants for private arbitration only.

Penalties, corrective orders, licence revocation, and other statutory remedies.

Clear selection

Q621. What authority power allows requesting documents and information from offering persons for investigations?

1 point

The Authority’s power to impose fines without requests.

The Authority’s power to privatise market data for investors.

The Authority’s power to market listings internationally.

The Authority’s power to request data and documents for control.

Clear selection

Q622. Who can the Authority request data and information from during an inspection?

1 point

Only licensed persons and not their employees.

Exclusively third-party overseas vendors outside jurisdiction.

Only market operators, excluding offering persons.

Offering persons, licensed persons, employees, members and clients.

Clear selection

Q623. For what legitimate purpose may the Authority request client or transaction documents?

1 point

Solely for marketing analysis and promotional activities.

Only to provide industry statistics to third parties.

To delegate oversight to private investigators only.

For control, investigation, complaint handling and regulatory enforcement actions.

Clear selection

Q624. What must regulated firms do when the Authority requests records relating to an offering?

1 point

Provide summaries only if the request is complex.

Delay response until legal counsel advises otherwise.

Redirect requests to unrelated third parties abroad.

Provide the requested information and explanations promptly as required.

Clear selection

Q625. Which action may the Authority take after reviewing requested information and finding breaches?

1 point

Offer firms voluntary compliance seminars only.

Publish the documents publicly without action.

Defer any action pending industry consensus.

Initiate administrative measures, penalties, or require remedial actions.

Clear selection

Q626. What jurisdiction does the Authority have regarding complaints about crypto regulations?

1 point

To refer all complaints to private arbitrators first.

To only accept complaints from licensed firms.

To ignore complaints lacking investor signatures.

To consider any complaints or grievances related to crypto regulations.

Clear selection

Q627. What outcome may the Authority seek after investigating a valid complaint?

1 point

Only send a generic advisory email to parties.

Publish complainant’s identity regardless of privacy.

Defer all remedies until civil court proceedings.

Require remedies, restitution, or impose sanctions on the respondent.

Clear selection

Q628. How should market participants submit complaints to the Authority?

1 point

Via social media comments tagging the Authority.

By verbal complaint at any market event only.

Through private email to industry lobbyists.

Using the Authority’s prescribed channels and providing supporting evidence.

Clear selection

Q629. Can the Authority act on anonymous complaints lacking supporting evidence?

1 point

Always enforce sanctions immediately on anonymous claims.

Never review anonymous complaints under any circumstance.

Require complainant to publicly withdraw anonymity first.

It may investigate but needs evidence to take enforcement action.

Clear selection

Q630. What is a key benefit of the Authority handling grievances centrally?

1 point

Faster private settlements between complainants and issuers.

Greater promotional opportunities for exchanges.

Reduced transparency for investors.

Consistent regulatory decisions and protection of market integrity.

Clear selection

Q631. What range of actions may follow violations of crypto regulations?

1 point

Only warnings without public disclosure.

Immediate criminal charges without administrative review.

Private fines managed by exchanges only.

Administrative measures, penalties, and publication of decisions.

Clear selection

Q632. What is an example of an administrative measure the Authority may take?

1 point

Order immediate investor refunds without process.

Appoint a new CEO for the issuer arbitrarily.

Lift all regulatory requirements temporarily.

Suspend any offering, issuance, listing or subscription activity.

Clear selection

Q633. Which administrative measure might the Authority require regarding subscription funds?

1 point

Allow issuer to retain funds indefinitely without disclosure.

Transfer funds to a trustee chosen by the issuer.

Convert funds into project tokens immediately.

Return subscription amounts to subscribers and halt the offering.

Clear selection

Q634. Can the Authority block websites or communications in response to violations?

1 point

No — the Authority lacks internet control powers.

Only courts may order website blocking, not the Authority.

It may only request voluntary removal by operators.

Yes — it may block operation of websites or communications in the UAE.

Clear selection

Q635. What recourse exists if the Authority suspends an offering for regulatory concerns?

1 point

Suspensions are permanent with no appeal route.

Suspensions require immediate criminal prosecution.

The issuer can ignore the suspension with no consequence.

The offering may be suspended pending remediation and then resumed if compliant.

Clear selection

Q636. When may the Authority publish decisions about violations?

1 point

Only upon instruction from the issuer or complainant.

Never; all decisions remain confidential indefinitely.

Only when an investor specifically requests publication.

After taking administrative actions or penalties, to inform the public.

Clear selection

Q637. Can the Authority require reassignment of assets or funds after violations?

1 point

No — asset custody decisions are only private contractual matters.

Only courts can order fund reassurance.

The Authority may only suggest voluntary reassignments.

Yes — it can order returning funds or restructuring asset custody arrangements.

Clear selection

Q638. What principle guides the Authority when imposing penalties or measures?

1 point

Prioritising issuer profitability above investor protection.

Deferring to industry lobbying groups for decisions.

Applying penalties arbitrarily without guidance.

Protecting public interest and ensuring regulatory compliance.

Clear selection

Q639. Are administrative measures limited only to issuance-related actions?

1 point

Yes — only offering suspension is permissible.

Only fines apply to other activities, no suspensions.

Measures are limited to advertising restrictions only

No — measures can affect listings, trading, websites, and operations.

Clear selection

Q640. What should firms expect when the Authority inspects following a complaint?

1 point

To defer cooperation until penalties are issued.

To only respond if legal counsel advises.

To be allowed to refuse Authority access routinely.

To provide documentation, cooperate, and implement any directed remedies.

Clear selection

Q641. Which sanction may the Authority impose on a firm breaching crypto regulations?

1 point

Require firms to publish marketing materials instead.

Force immediate insolvency of the firm without review.

Impose a financial penalty within legal maximum limits.

Appoint a private mediator to negotiate fines.

Clear selection

Q642. What administrative action can the Authority take to stop an ongoing illegal offering?

1 point

Only issue an advisory note but allow offering to continue.

Suspend any offering, issuance, subscription, or listing immediately.

Defer action until civil courts decide the matter.

Directly transfer assets to a competitor exchange.

Clear selection

Q643. When can the Authority cancel a licence or approval issued to a firm?

1 point

Only after ten years of non-compliance without interim steps.

Cancellation requires unanimous investor consent always.

The Authority may not cancel licences under any conditions.

If the firm violates regulations and conditions warrant cancellation.

Clear selection

Q644. How are financial penalties imposed upon firms constrained by the regulations?

1 point

Penalties are unlimited and at the Authority’s discretion always.

They may not exceed the maximum amounts stipulated in law.

Firms can negotiate to set penalties lower than legal maxima.

Only non-monetary sanctions are permitted by regulation.

Clear selection

Q645. Which measures can the Authority impose on individuals connected with breaches?

1 point

Only impose public shaming without operational consequences.

Force immediate imprisonment without criminal process.

Require individuals to resign without other sanctions.

Issue a notice, suspend practice, or cancel approval as applicable.

Clear selection

Q646. What is the maximum typical suspension period for an individual practising the regulated work?

1 point

A suspension not exceeding two months for the individual.

Indefinite suspension with no review possible.

A minimum of one year suspension mandatory.

Suspension cannot exceed seven days legally.

Clear selection

Q647. Under what condition can the Authority cancel an individual’s approval or accreditation?

1 point

Only if a court convicts the individual of a crime.

Cancellation requires the individual’s voluntary request.

The Authority cannot cancel approvals once granted.

If the Authority deems cancellation appropriate after its assessment.

Clear selection

Q648. What happens to entities identified after their licence is cancelled?

1 point

They automatically become exempted entities under a new regime.

They retain all previous privileges despite cancellation.

They are immediately liquidated by the Authority.

They will be identified as entities whose licence or approval was cancelled.

Clear selection

Q649. What can the Authority publish regarding violators of crypto regulations?

1 point

Only aggregated statistics without naming individuals.

Private disciplinary notes unavailable to the public.

Non-actionable rumours about alleged misconduct

Names of violators together with details of violations and imposed penalties.

Clear selection

Q650. Why might the Authority publish names of violators and decisions?

1 point

To advertise enforcement actions for commercial gain.

To replace criminal prosecutions with public embarrassment.

To assist firms in recruiting staff from sanctioned entities.

To inform the public and deter non-compliance across the market.

Clear selection

Q651. Does the Authority ordinarily issue a notice before imposing penalties?

1 point

The Authority always imposes fines without prior notice.

Notices are optional and used only for minor matters.

The Authority must obtain court orders before issuing any notice.

The Authority may address a notice as part of administrative measures.

Clear selection

Q652. Which remediation may the Authority require where subscribers were harmed?

1 point

Order subscribers to forfeit funds permanently regardless.

Redirect refunded amounts to other unrelated projects.

Require donors to cover subscriber losses instead.

Oblige the concerned authorities or firm to return amounts paid by subscribers.

Clear selection

Q653. What technical enforcement action can the Authority coordinate regarding violative online content?

1 point

Only advise website owners to remove content voluntarily.

Publish offending website IP addresses but take no action.

Require social media platforms to ban all discussion of violations.

Block operation of any website in the UAE via relevant government bodies.

Clear selection

Q654. Can penalties extend to corporate board members or senior executives?

1 point

No — penalties are limited to the corporate entity only.

Only junior staff can be disciplined, not executives.

Executives are always immune from regulatory sanctions.

Yes — members of the board, CEO or approved employees can face penalties.

Clear selection

Q655. When may the Authority publish the names of violators?

1 point

Immediately upon receiving anonymous allegations.

Only after criminal conviction in court.

Only at the end of every fiscal year.

After deciding on violations and imposing any penalties.

Clear selection

Q656. Where is the maximum financial penalty amount determined for breaches?

1 point

By the offender’s annual marketing budget.

By the Authority’s CEO without legal basis.

By investor vote at general meetings.

By the law and regulations that set maximum penalty limits.

Clear selection

Q657. What effect does cancellation of a firm’s licence have on its authorisation to operate?

1 point

Cancellation is symbolic only; operations continue unaffected.

The firm gains temporary expanded authority automatically.

Cancellation requires investor approval to take effect.

The firm loses the licence or approval and cannot legally operate that activity.

Clear selection

Q658. How might penalties escalate for repeated or serious breaches?

1 point

Only ever a single warning regardless of recurrence.

Immediate imprisonment without administrative steps.

Repeated breaches result only in private remediation plans.

From notice to fines, suspensions, cancellation and publication successively.

Clear selection

Q659. What recourse may affected subscribers have after the Authority orders refunds?

1 point

No recourse — refunds end all claims regardless.

Only an apology is provided, no monetary redress

Subscribers must pursue arbitration exclusively overseas.

Recover subscription amounts as ordered; seek further civil remedies if necessary.

Clear selection

Q660. Why does the Authority publish violator names rather than keeping all decisions confidential?

1 point

To shame companies for unrelated commercial advantage.

To delegate enforcement to competitors publicly.

To avoid performing further investigations privately.

To maximise public transparency and deter future regulatory breaches.

Clear selection

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