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Article (21): Issuance and Redemption of Payment Tokens

2/2024 Issued on 14/6/2024
1.

A Payment Token Issuer must:

a)on receipt of payment for a Payment Token, without delay transfer the Payment Token to the Wallet nominated by the purchaser; and
b)at the request of the Tokenholder, without delay (and in any case by the same time on the next Business Day after the day on which the request was made, unless the Central Bank permits otherwise) redeem (or, in the case of a Foreign Payment Token, initiate redemption) in Fiat Currency at par value the Dirham (AED) or Foreign Currency denominated face value of the Payment Token presented by the Tokenholder to the Payment Token Issuer for redemption.
2.A Tokenholder may request redemption of a Payment Token without any limitation in time. The Central Bank may extend the Dormant Accounts Regulation, or any provision thereof to Payment Token Issuers.
3.A Tokenholder shall not be entitled to a Payment Token once it is redeemed.
4.A Payment Token Issuer must provide a Customer with a Customer Agreement that clearly and prominently states the conditions of redemption, including any fees relating to redemption, in good time before the parties enter into the Customer Agreement.
5.Redemption may be subject to a fee only where the fee is proportionate and commensurate with the costs actually incurred by the Payment Token Issuer.
6.

A Licensed Payment Token Issuer must:

a)maintain a copy of the Distributed Ledger Technology on which its Payment Tokens are issued;
b)put in place a process to enable Customers to redeem their Payment Tokens in the event of a failure or other disruption of the Distributed Ledger Technology on which the Payment Token is issued, which does not rely on the normal operation of that Distributed Ledger Technology; and
c)in the event that a ‘fork’ or similar event which results in the creation of one or more versions of a Payment Token, redeem any one version of each Payment Token as if it were the version of the Payment Token that the Payment Token Issuer originally sold or transferred.