UAE Regulatory Disclosures
Entity Name: Aquanow ME FZE
Licence No.: VL/24/01/001
Licence Issued On: 22/07/2024
Licensed Activities: Broker-Dealer Services; Lending and Borrowing Services; Management and Investment Services
Responsible Individuals: Phil Sham - CEO, Raven Groom-Baker - CCO
Address: Floor 5, The Offices 3, One Central, Dubai World Trade Centre, Dubai, UAE
Incorporated In: United Arab Emirates
Licensed By: VARA
Virtual Assets Standards Policy
Aquanow ME FZE assesses Virtual Assets before providing services in relation to them. The purpose of this assessment is to help determine whether a Virtual Asset is appropriate for support by Aquanow ME FZE, having regard to legal, regulatory, operational, technological, market, liquidity, financial crime, consumer protection and reputational considerations.
Aquanow ME FZE’s Virtual Asset assessment may include:
- market capitalisation, fully diluted value, circulating supply and liquidity;
- design, technical architecture, features and use cases;
- security, immutability and resilience of the relevant distributed ledger technology;
- smart contract, code review, audit history and bug bounty information where applicable;
- issuer, developer or project background, including experience and regulatory or enforcement history;
- legal and regulatory treatment, including whether the Virtual Asset is prohibited or restricted in relevant jurisdictions;
- market integrity risks, including potential manipulation, concentration, wash trading or artificial volume;
- enforceability of any rights represented by the Virtual Asset, including rights to any underlying asset where applicable;
- traceability and transaction monitoring considerations;
- conflicts of interest arising from supporting the Virtual Asset;
- roadmap, governance and future development of the project; and
- circumstances in which support for the Virtual Asset may be suspended, restricted or discontinued.
Aquanow ME FZE applies its Virtual Asset Standards before providing services in relation to a Virtual Asset and on an ongoing basis thereafter. Aquanow ME FZE may suspend, restrict or cease services in relation to a Virtual Asset where it no longer meets Aquanow ME FZE’s standards, where required by law or regulation, or where Aquanow ME FZE considers it appropriate having regard to client protection, market integrity, operational risk or regulatory expectations.
Application of Aquanow ME FZE’s Virtual Asset Standards does not constitute investment advice, a recommendation, or any representation that a Virtual Asset is safe, low-risk or suitable for any client.
Virtual Assets Offered
Aquanow ME FZE only provides services in relation to Virtual Assets that have been assessed and approved in accordance with its internal Virtual Asset Standards.
The Virtual Assets currently supported by Aquanow ME FZE are set out in the downloadable Virtual Asset List below. This list includes information such as asset name, symbol, issuance date, market data, supply information, audit status and relevant historical price data, where available.
The Virtual Assets supported by Aquanow ME FZE may change from time to time and may depend on client eligibility, jurisdiction, product availability, liquidity, operational capability and applicable regulatory requirements.
Aquanow ME FZE may suspend, restrict or discontinue support for any Virtual Asset where required or appropriate, including due to legal, regulatory, liquidity, operational, technology, market integrity, cybersecurity or client protection concerns.
Cyber Risk
Virtual Assets and services relating to Virtual Assets are exposed to cyber, technology and operational risks. These risks may include hacking, malware, phishing, account takeover, denial-of-service attacks, smart contract vulnerabilities, network disruption, loss of private keys, compromised credentials, fraudulent instructions, incorrect wallet addresses, failed or delayed settlement, and errors in distributed ledger technology.
Some Virtual Asset transactions may be irreversible. If a Virtual Asset is sent to an incorrect or incompatible wallet address, or if a client loses access to private keys, seed phrases, credentials or authentication tools, the relevant Virtual Assets may be lost permanently and may not be recoverable.
Clients should take appropriate precautions to protect their accounts, systems, wallets, private keys, seed phrases, passwords and authentication methods. These may include enabling multi-factor authentication, using secure devices and networks, storing private keys or seed phrases securely and offline where applicable, monitoring account activity, and promptly notifying Aquanow ME FZE of any suspected unauthorised access or suspicious activity.
Client Assets Safeguarding
Aquanow ME FZE maintains arrangements designed to safeguard Client Money and Client Virtual Assets in accordance with applicable VARA requirements and Aquanow ME FZE’s internal policies and procedures.
Client Money is held in designated Client Accounts with third-party banks and is segregated from Aquanow ME FZE’s own money. Aquanow ME FZE does not use Client Money belonging to one client to satisfy obligations owed by another client or entity.
Client Virtual Assets held or controlled by Aquanow ME FZE in connection with its licensed VA Activities are maintained on a one-to-one basis in the same Virtual Asset owed to the client, subject to applicable requirements. Aquanow ME FZE maintains internal records to attribute Client Virtual Assets to the relevant client.
Client Virtual Assets may be held through Aquanow ME FZE’s own infrastructure and/or third-party service providers. Aquanow ME FZE conducts due diligence on banks, custodians and other relevant service providers involved in handling Client Money or Client Virtual Assets.
Aquanow ME FZE performs regular reconciliations of Client Money and Client Virtual Assets against its internal records and relevant bank, wallet, custodian or infrastructure records. Material discrepancies are investigated, escalated and reported where required.
Aquanow ME FZE does not use Client Virtual Assets for its own account unless expressly instructed by the client, permitted under the client agreement, and permitted under Aquanow ME FZE’s applicable licence permissions and regulatory requirements.
Client Money and Client Virtual Assets are not covered by deposit protection, investor compensation or other similar financial protection schemes.
Activity-Specific Disclosures
Aquanow ME FZE is licensed by VARA to provide Broker-Dealer Services, Lending and Borrowing Services, and Management and Investment Services.
Aquanow ME FZE is permitted to serve Institutional Investors and Qualified Investors directly. Aquanow ME FZE is also permitted to serve Retail Investors through Licensed Financial Institutions.
Broker-Dealer Services
Aquanow ME FZE provides Broker-Dealer Services in or from Dubai under its VARA licence. Aquanow ME FZE may provide services on a direct business-to-business basis or through fully disclosed business-to-business-to-client arrangements with approved partners.
Aquanow ME FZE’s primary dealing model is as principal, including matched principal or riskless principal dealing. This means Aquanow ME FZE may enter into a transaction with a client as counterparty while managing its related exposure through back-to-back or corresponding arrangements with Aquanow group entities or other liquidity sources.
Aquanow ME FZE may also facilitate execution arrangements in accordance with the applicable client agreement, product terms and approved operating model.
Aquanow ME FZE does not provide Advisory Services and does not provide personal recommendations in relation to Virtual Assets.
Lending and Borrowing Services
The Firm acts as the Lender using its own capital. No actual or potential conflicts of interest have been identified with respect to the Firm’s Lending and Borrowing Services. The Firm has 2 lending products:
1. Loans: typically, term loans with a fixed tenor and repayment schedule. Requires a credit assessment. Interest is charged on the loan amount and fees may be charged as well. Loans can be for any approved purpose. Loans may or may not have covenants at the discretion of the Firm. Only over collateralised. Available for Qualified Investors and Institutional Investors clients only. Documented under a Master Loan Agreement and a Term Sheet. Loans can also be structured as a facility, for example, where a client requires a standby facility.
2. Settlement facility: A revolving facility for settlement funding with no set tenor and no set repayment/amortisement schedule. Callable at the Firm’s discretion. Requires a credit assessment. Interest is charged on the commitment and fees may be charged as well. Can be rebated against commissions/spread/other income. Settlement Facility can only be used within the Firm and may or may not have covenant or collateral (subjective as approved by the Firm based on the credit assessment). Liquidation is undertaken at the Firm’s discretion as documented in the Term sheet. Available for Qualified Investors and Institutional Investors clients only. Documented under a term sheet.
The Firm has governance controls in place with respect to Virtual Assets. Please refer to the Firm’s VA Standards. Only VAs that have been approved by the Firm may be considered for the Firm’s Lending and Borrowing Services. The Firm does not use any proprietary protocols.
The Firm shall be entitled to receive the benefit of any incremental Virtual Assets generated as a result of a Hard Fork in the relevant Virtual Asset protocol or an Airdrop that results in a second type of Virtual Asset (the “New Asset”) being created from the Virtual Asset constituting principal amount of the Loan.
Markets for Virtual Assets have varying degrees of liquidity. Some are quite liquid while others may be thinner. Thin markets can amplify volatility. There is never a guarantee, representation nor warranty that there will be an active market for you to sell, buy, or trade Virtual Assets or products derived from, or ancillary to, them. Furthermore, any market for Virtual Assets may abruptly appear and vanish. You acknowledge there may be delays in liquidating your Virtual Assets, particularly in times of extreme volatility.
The Firm, though it’s Group, provides liquidity directly to clients and also has a wide range of relationships with exchanges, brokers, liquidity providers and market participants in order to access liquidity. Despite this, the Firm provides no guarantee, representation or warranty that it can access liquidity at any given time and especially in times of extreme volatility.
The Firm has policies and procedures, systems and controls in place to protect client’s Virtual Assets when held with the Firm and from counterparty risk. This includes, but is not limited to, counterparty due diligence, security and technology and contractual arrangements. The Firm only enters into over-collateralised loans.
The Firm may use Virtual Assets held by it. Activities may include the purchase, sale, borrowing, lending or otherwise disposal of Virtual Assets, including by means of pledging or rehypothecating.
Virtual Assets used by the Firm in the course of the provision of Lending and Borrowing Services may be at risk. These risks range from market, operational (including legal, regulatory and reputational), financial, liquidity, cybersecurity, and currency risks.
Access to or withdrawal of Virtual Assets in connection with Lending and Borrowing Services is subject to the applicable client agreement, product terms and risk disclosures, including the risk that there may be delays in liquidating Virtual Assets, particularly in times of extreme volatility.
Management and Investment Services
Aquanow ME FZE is licensed to provide Management and Investment Services. The current approved scope of this activity is limited to staking-related activity. Aquanow ME FZE does not currently actively offer this service to clients. Relevant disclosures will be updated before such services are made available.
Order Routing Practices
Aquanow ME FZE takes into account relevant execution factors when handling client orders, including price, costs, speed, likelihood of execution and settlement, size, nature of the transaction, market conditions, liquidity and any specific client instructions.
Aquanow ME FZE’s primary liquidity and routing arrangements may involve Aquanow group entities, including Aquanow Technologies Ltd. Aquanow ME FZE may also use other liquidity sources, counterparties, trading venues or service providers, as applicable.
Where Aquanow ME FZE receives a specific client instruction, Aquanow ME FZE will handle the relevant order in accordance with that instruction, subject to applicable laws, regulatory requirements, operational capability and Aquanow ME FZE’s client agreement.
Aquanow ME FZE periodically reviews its execution and routing arrangements to assess whether they remain appropriate having regard to execution quality, liquidity, market conditions, operational resilience and client outcomes.
Virtual Asset Pricing
Aquanow ME FZE may provide clients with quoted prices for Virtual Asset transactions. Prices may be determined by reference to available liquidity, market prices, quotes received from Aquanow group entities, market makers, exchanges, liquidity providers or other relevant sources.
Quoted prices may include spread, mark-up, mark-down, fees, costs or other charges, as applicable to the relevant service and client arrangement. Fees and charges will be disclosed to clients in accordance with Aquanow ME FZE’s client agreement and applicable regulatory requirements.
Aquanow ME FZE does not receive remuneration, discounts or non-monetary benefits for routing client orders to a particular venue, counterparty or liquidity source where this would give rise to an unmanaged conflict of interest.
Funds, Virtual Assets and Clearing
Aquanow ME FZE may hold or control Client Money and Client Virtual Assets in connection with its licensed VA Activities, as described in the Client Assets Safeguarding section above. Aquanow ME FZE does not provide standalone Custody Services.
Aquanow ME FZE may maintain Client Money, Client Virtual Assets or related accounts with Aquanow group infrastructure and/or third-party banks, custodians, wallet infrastructure providers or other service providers, as applicable to the relevant service. Additional details may be made available to clients where required.
Aquanow ME FZE does not provide clearing services for other Broker-Dealer VASPs unless expressly agreed, documented and permitted under its applicable licence permissions and regulatory requirements.
Referrals and Introductions
Aquanow ME FZE may receive client introductions or referrals from approved partners, including Licensed Financial Institutions.
Where Aquanow ME FZE pays or receives any referral fee, commission or other benefit that is required to be disclosed, this will be disclosed to the relevant client in accordance with applicable requirements.
Conflicts of Interest
Aquanow ME FZE maintains arrangements to identify, prevent, manage and, where appropriate, disclose actual, potential or perceived conflicts of interest.
Conflicts of interest may arise where Aquanow ME FZE, its group entities, Board members, Senior Management, employees, affiliates or service providers have interests that differ from, or may be perceived to differ from, the interests of a client.
Examples of potential conflicts include:
- Aquanow ME FZE acting as principal in a transaction with a client;
- Aquanow ME FZE routing orders or related activity through Aquanow group entities;
- Aquanow ME FZE receiving fees, spreads or other economic benefits from transactions;
- Aquanow ME FZE providing services to issuers, clients, liquidity providers or other counterparties whose interests may differ;
- employees or representatives having personal, financial or professional interests that may affect their judgement; and
- the placement or distribution of newly issued Virtual Assets.
Aquanow ME FZE seeks to manage conflicts through governance controls, segregation of duties, approval processes, disclosure, recordkeeping, monitoring and escalation to Compliance, Senior Management or the Board where appropriate.
Where a conflict cannot be adequately avoided or managed, Aquanow ME FZE may disclose the nature of the conflict to the relevant client or decline to provide the relevant service.
Fair Treatment of Clients
Aquanow ME FZE is committed to treating clients fairly, honestly and professionally. Aquanow ME FZE seeks to ensure that client communications are clear, fair and not misleading, that clients receive information relevant to their use of Aquanow ME FZE’s services, and that services are provided in accordance with applicable client agreements, policies, procedures and regulatory requirements.
Aquanow ME FZE’s services are subject to client eligibility, onboarding, due diligence, product availability, jurisdictional restrictions, operational capability and applicable regulatory requirements.
Aquanow ME FZE may restrict, suspend or refuse to provide services where required by law or regulation, where necessary to manage risk, where a client does not meet eligibility or onboarding requirements, or where Aquanow ME FZE considers it appropriate to protect clients, the Firm, market integrity or regulatory compliance.
Complaints
Aquanow ME FZE is committed to handling complaints fairly, promptly and consistently.
You may submit a complaint to Aquanow ME FZE through any usual communication channel, including by using the Complaint Form available on Aquanow ME FZE’s UAE page, or by contacting us at legal@aquanow.com, or by telephone at +971 4526 9453.
To help us assess your complaint, please include as much detail as possible about the nature of your complaint, including your name, contact details, relevant account or transaction information, dates, supporting documents and the outcome you are seeking.
Aquanow ME FZE will acknowledge complaints within one week of receipt. Where possible, Aquanow ME FZE will seek to resolve complaints promptly through the channel through which the complaint was received.
Aquanow ME FZE will aim to resolve complaints within four weeks of receipt. If there are extraordinary circumstances delaying resolution, Aquanow ME FZE will provide an update within four weeks explaining the reason for the delay and will resolve the complaint no later than eight weeks from the date the complaint was made.
Aquanow ME FZE does not charge any fee for submitting or handling a complaint.
Where a complaint relates to a third-party service provider, partner or Licensed Financial Institution involved in the provision of services, Aquanow ME FZE may coordinate with the relevant third party to help resolve the complaint. Aquanow ME FZE remains responsible for complaints relating to its VA Activities.
Aquanow ME FZE maintains records of complaints, steps taken in response, and complaint outcomes for regulatory, audit and governance purposes.
Whistleblowing and Anti-Bribery and Corruption Reporting
Aquanow ME FZE maintains a zero-tolerance approach to bribery, corruption, fraud and other improper conduct.
Reports or concerns relating to suspected bribery, corruption, fraud, misconduct, conflicts of interest, market abuse, regulatory breaches or other improper conduct involving Aquanow ME FZE, its Board, Staff, service providers or persons acting on its behalf may be submitted by email at legal@aquanow.com or by telephone at +971 4526 9453.
Aquanow ME FZE will treat reports confidentially to the extent reasonably possible and permitted by law. Aquanow ME FZE does not tolerate retaliation against any person who raises a concern in good faith.
Where required, Aquanow ME FZE may investigate, escalate and report relevant matters to VARA or other competent authorities.
Privacy and Data Protection
Aquanow ME FZE collects and processes personal data in connection with its website, client onboarding, provision of services, client communications, compliance obligations, regulatory reporting, complaints handling, legal obligations, business administration and related purposes.
Aquanow ME FZE may share personal data with Aquanow group entities, service providers, professional advisers, regulators, competent authorities and other persons where required or permitted by law, regulation, contract or legitimate business purpose.
Aquanow ME FZE applies technical and organisational measures designed to protect personal data against unauthorised access, disclosure, loss, misuse or alteration.
Further information on how Aquanow ME FZE collects, uses, stores and shares personal data is available in Aquanow ME FZE’s Privacy Policy.
Contact Details
For regulatory disclosures, complaints, whistleblowing, anti-bribery and corruption reports, privacy queries or other legal and compliance matters relating to Aquanow ME FZE, please contact:
Email: legal@aquanow.com
Telephone: +971 4526 9453
Address: Floor 5, The Offices 3, One Central, Dubai World Trade Centre, Dubai, UAE