Payment Token Services limited to the following types of Payment Tokens and posing a low level of risk to Customers and the financial system are exempt from this Regulation:
a)
Payment Tokens used for certain reward schemes. Such Payment Tokens may only be:
(i)
issued in return for a sum of money paid by (A) the Payment Token Issuer; or (B) a Merchant under an agreement with the Payment Token Issuer; and
(ii)
used for making payments for goods or services provided by the Payment Token Issuer or Merchant under specific terms and conditions of the Payment Token Service.
Examples may include loyalty schemes provided by shops and supermarkets that offer Payment Token rewards for customer loyalty;
b)
Payment Tokens used for certain bonus point schemes:
(i)
Such Payment Tokens may be used as points or units (by whatever name called) provided by (A) the Payment Token Issuer; or (B) a Merchant who agrees to provide goods or services to the Customer under an agreement with the Payment Token Issuer.
(ii)
The Customer may only use the Payment Token for making payments for goods or services provided by the Payment Token Issuer or a Merchant.
Examples are airline mileage programmes and customer loyalty schemes that provide Payment Tokens to customers to reward their patronage, and whereby such Payment Tokens are not redeemable for cash;
c)
Payment Tokens that can only be used as a Means of Payments for non-financial goods or services provided by the Payment Token Issuer; or
The Central Bank may exempt a Payment Token Issuer from licensing and other requirements under this Regulation with respect to its Payment Tokens, and specify the conditions for such exemption, where:
a)
if the Payment Token Issuer had to hold a Reserve of Assets in accordance with Article (22), the aggregate amount of the Reserve of Assets would not exceed half a million Dirham (500,000 AED) or its equivalent; and
b)
the aggregate number of Tokenholders is not more than 100.
3.
The Central Bank may determine that a Payment Token Service is not exempt or is no longer exempt and require the Person performing the service to apply for a License.