HashKey (MENA) - Exchange Rules (Dubai - HashKey MENA FZE) – HashKey MENA

HashKey (MENA) - Exchange Rules

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HashKey MENA FZE (“HMF” or “we”) operates the HashKey (MENA). These HashKey (MENA) - Exchange Rules (“Exchange Rules”) is an important document governing your use of HashKey (MENA). Please ensure you read it carefully and familiarize yourself with these Exchange Rules prior to and during your trading on the HashKey (MENA). These Exchange Rules are subject to change at our discretion and you are reminded to check the latest version on our website from time to time. You are also required to read our Privacy Policy, and Client Risk Disclosures Statement which impose additional requirements to these Exchange Rules. By depositing funds and/or trading on the HashKey (MENA) you acknowledge that you have read, fully understood and accepted the terms in the aforesaid documents. For the avoidance of doubt, in the event of any inconsistency between those documents and these Exchange Rules, these Exchange Rules will prevail.

If you have any questions about these Exchange Rules, please contact us using the details below. In any event, we do not act as your advisors in any capacity and you should consult your independent professional advisors for any issues or questions you may have regarding entering into any contractual relationship with us.

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Table of Contents

HashKey (MENA) - Exchange Rules

Part A – General

Section 1 Interpretation

1.1 Definitions

1.2 Rules of Interpretation

Section 2 Introduction

2.1 HashKey (MENA)

2.2 Listing Committee

Section 3 About the Exchange Rules

3.1 Application

3.2 Status

3.3 Procedure where none laid down

3.4 General provisions

Part B - Listing

Section 4 Listing Criteria

4.1 HMF Scope of Listing

4.2 General requirements

4.3 Additional requirements for Large-cap Virtual Assets

4.4 Specific requirements for Security Tokens

4.5 Minimum requirements only

Section 5 Listing Procedure

5.1 Application procedure

5.2 Documents and information required

5.3 Interview and further information or document

5.4 Due diligence

5.5 Declarations and undertakings

5.6 Listing conditions

5.7 Listing fees and costs

Section 6 Withdrawal of listing application

Section 7 Listing Document

7.1 Information in Listing Document

7.2 Statements in Listing Document

7.3 Approval for dissemination

7.4 Amendment and variation of Listing Document

7.5 Distribution of Listing Document

Part C – Continuing Obligations and Responsibilities of Issuers

Section 8 Notification requirement

8.1Issuer’s obligation to notify

8.2Disclosure to the market

8.3HMF’s rights to request information

Section 9 Payment of fees

Section 10 Financial information

Section 11 Maintenance of eligibility

Section 12 Self-reporting

Part D – Removal of Virtual Asset

Section 13 HMF’s power to remove a Virtual asset from HashKey (MENA)

13.1 Relevant circumstances

13.2 Removal of Virtual Asset from HashKey (MENA) Warning

Section 14 Removal of Virtual Asset from Platform request

Section 15 Removal of Virtual Asset from HashKey (MENA) Notification

Section 16 Withdrawal of Client Money and Virtual Assets upon removal

Section 17 Transfer of Listing

Section 18 Relisting

Part E – Trading Participants

Section 19 Type of Trading Participants

Section 20 Eligibility

20.1 Individuals and institutions

20.2 Other criteria

Section 21 Application procedure

Section 22 Document and information required

Section 23 Declaration, undertakings and deposit requirement

Section 24 HMF’s decision

24.1 Decision subject to receipt of all required information

24.2 Approval conditions

Part F – Account Opening and Trading Rules

Section 25 Trading on HashKey (MENA)

Section 26 List of assets traded

Section 27 Permitted investors only

Section 28 Pre-funded trades only

Section 29 Trading channels

Section 30 Trading time

Section 31 Trading pairs

Section 32 Order types and Order time limit

32.1 Type of Orders

32.2 Order Time Limit

Section 33 Order execution methodology

33.1 Order Verification Rules

33.2 Order Priority

33.3 Execution of Order

33.4 Cancellation and amendment of Order

33.5 Conflicts of Interest

Section 34 Depositing and withdrawing Client’s fiat currencies and Virtual Assets

34.1Deposit/Withdrawal Procedures

34.2General Rules for Deposit/Withdrawal

Section 35 Restricting, suspending, rejecting or cancelling Orders

Section 36 Clearing and settlement

Section 37 Preferred banking partners

Part G – Trading Halt, Suspension and Resumption of Trading

Section 38 Criteria and procedure of trading halt, suspension and resumption of trading

Section 39 Notification of trading halt and suspension

Section 40 HMF’s decision

Part H – Custody of Virtual Assets

Section 41 Custody arrangement

Section 42 Title to Virtual Assets

Section 43 Segregated accounts

43.1 Virtual Assets

43.2 Client’s fiat currencies

Part I – Prevention of market manipulation and abusive activities

Section 44 Identify market manipulative and abusive activities

Section 45 Reporting

Section 46 Market surveillance programme

Part J – Fees

Section 47 Fees to be published on website

Part K – Breach of these Exchange Rules

Section 48 HMF’s power to investigate

Section 49 Request to remedy

Section 50 Penalties

Part L – Security of HashKey (MENA)

Section 51 Security measures

Section 52 System Maintenance and Interruptions

52.1 System Maintenance Arrangements

52.2 Unexpected Interruptions Handling

Part M – Contact, Complaint Procedures and Dispute Resolutions

Section 53 Contact information of HashKey (MENA)

Section 54 Complaint procedures

Section 55 Dispute resolution

Part A – General

Section 1 Interpretation

1.1 Definitions

In these Exchange Rules, unless the context requires otherwise, the following terms shall have the meaning set forth below:

“Account” means the account (including its sub-account, if any) opened by a Trading Participant with HashKey (MENA) for the purposes of utilizing the services at HashKey (MENA), including trading Virtual Assets.

“Account Opening and Trading Rules” means HMF’s “Account Opening and Trading Rules” which governs such matters relating to opening an account and trading on HashKey (MENA) as published on HashKey (MENA)’s official website and updated from time to time.

“AML” means HMF’s anti-money laundering check which is to ensure that no illegally obtained funds or proceeds of criminal activities are used to conduct activities on HashKey (MENA).

“API” means application processing interface.

“Associated Entity” means HashKey Xpert Limited which:

is a limited liability company incorporated in Hong Kong;
holds a “Trust or Company Service Provider Licence” (Licence No T006486) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615 of the Laws of Hong Kong); and
is an Affiliate of HMF.

“Business Day” means any day that is not a Saturday, Sunday or a public holiday and on which banks are generally open for business in Dubai and Hong Kong.

“VARA” means the Virtual Assets Regulatory Authority.

“Exchange Rules” means the HashKey (MENA) - Exchange Rules as provided through the official website of HashKey (MENA) from time to time.

“HashKey Group” means HashKey Virtual assetGroup Limited and its affiliates.

“HashKey (MENA)” means the Virtual asset trading platform branded “HashKey (MENA)” which is operated by HMF.

“HMF” means HashKey MENA FZE (Registration number: DWTC Registration #3175 ), an exempted company limited by shares incorporated under the laws of Dubai which has been granted a licence by the VARA.

“HKIAC” means the Hong Kong International Arbitration Centre.

“Hong Kong” means the Hong Kong Special Administrative Region of the People’s Republic of China.

“Issuer” means any natural person or legal entity approved by HMF under the Exchange Rules whose Virtual assetis listed on HashKey (MENA).

“Issuer Applicant” means any natural person or legal entity whose Virtual Assets the subject of an application for listing on HashKey (MENA).

“KYC” means HMF’s “know your client” process which is for verifying the identity of the Trading Participants.

“Listing Committee” means the committee established by HMF as an independent decision maker for listing issues and a review body for decisions made by HMF.

“Listing Document” means a document that complies with Section 7.

“Order” means an instruction from a Trading Participant to either buy or sell a Virtual asseton HashKey (MENA).

“Proscribed Person” means a person who appears to HMF to:

(a)be in breach of any AML/CFT Requirements of any jurisdiction;

(b)appear in a list of persons with whom dealings are proscribed by the United Nations or another Government Agency or a regulatory authority under Applicable Laws; or

(c)act on behalf, or for the benefit of, any person described in paragraph (a) or (b);

“Token Admission Policy and Procedures” means HMF’s internal policy and procedures which governs the process of listing and removal Virtual Assets on HashKey (MENA), as updated from time to time.

“Listing Team” means the team at HMF responsible for researching, reviewing, and gathering all the expert feedbacks for Listing Committee.

“Trading Applicant” means any person who is the subject of an application for opening an account and dealing in Virtual Assets on HashKey (MENA).

“Trading Participants” means those natural persons and entities set out in Section 19 which are approved by HMF under the Exchange Rules to open an account and deal in Virtual Assets on HashKey (MENA).

“User” means a user of HashKey (MENA), including Issuers, Issuer Applicants, Trading Participants.

“Virtual Assets” means digital representations of value which may be in the form of digital tokens (such as digital currencies, utility tokens or security or asset-backed tokens), any other virtual commodities, crypto assets or other assets of essentially the same nature.

“we” means HMF.

Rules of Interpretation

References in the Exchange Rules to Dubai laws and to Dubai regulations shall be construed as references to those laws or regulations as respectively modified (on or before the date hereof) or re-enacted (whether before or after the date hereof) from time to time and to any orders, regulations, instruments or subordinate legislation made under the relevant laws or regulations thereof which has been so re-enacted (with or without modifications).
The headings are inserted for convenience only and shall not affect the construction of the Exchange Rules.
Except where the context otherwise requires words denoting the singular include the plural and vice versa; words denoting any one gender include all genders; words denoting persons include incorporations and firms and vice versa.
Except where the context otherwise requires references to the word include or including (or any similar term) are not to be construed as implying any limitation and general words introduced by the word other (or any similar term) shall not be given a restrictive meaning by reason of the fact that they are preceded by words indicating a particular class of acts, matters or things.
Except where the context otherwise requires any reference to writing or written includes any method of reproducing words or text in a legible and non-transitory form.
Except where the context otherwise requires references to times of the day are to that time in UTC+0 (Greenwich Mean Time) and references to a day are to a period of 24 hours running from midnight to midnight in UTC+0 (Greenwich Mean Time).
References to Sections and Schedules are (unless the context requires otherwise) to sections of and schedules to the Exchange Rules.
All representations, undertakings, warranties, indemnities, covenants, agreements and obligations given or entered into by more than one person are given or entered into severally unless otherwise specified.

Section 2 Introduction

2.1 HashKey (MENA)

General

HashKey (MENA) is an automated Virtual asset trading platform operated by HMF. Its mission is to provide safe, convenient and highly efficient services relating to Virtual Assets to its customers. Neither HashKey (MENA) nor HMF is a principal party to any transactions conducted via HashKey (MENA).

Regulatory

HMF is a DWTC establishment, registered in the Dubai World Trade Centre #3175 with registered offices at EPO-0120, 26th Floor, Sheikh Rashid Tower, DM Building Number 14, Dubai World Trade Center Complex, Sheikh Zayed Road, Dubai. HMF is regulated by the Dubai Virtual Assets Regulatory Authority to carry out virtual-asset related activities, including exchange and broker-dealer services, in or from the Emirate of Dubai, including its free zones, but excluding the Dubai International Financial Centre. HMF is a Virtual asset trading platform granted by VARA under the Virtual Assets and Related Activities Regulations 2023 to operate a virtual asset trading platform.

Risk management

HMF maintains a sound risk management framework to identify, measure, monitor and manage the full range of risks arising from its businesses and operations.

Notifications to Authority

As an entity which is [licensed] by the VARA, HMF has ongoing reporting and notification obligations to the VARA and may be required to submit such information as may be specified and requested by the VARA and other law enforcement authorities from time to time.

Good Industry Practice

Apart from observing the regulatory regime of the VARA and other applicable compliance measures, HMF maintains and operates HashKey (MENA) in accordance with good industry practices, which platform operators and entities engaged in internet trading incorporate into their information technology and cybersecurity risk management frameworks.

Security of HashKey (MENA)

HMF uses its best endeavours to manage and supervise the design, development, deployment and operation of HashKey (MENA) in accordance with industry best practices and international standards to ensure that HashKey (MENA) is appropriately secured against cyberattack, misuse or unauthorised access.

HMF also has in place internal governance documentation and employs cybersecurity controls in accordance with industry best practices and international standards to protect HashKey (MENA) from being abused and conducts regular reviews to ensure that security measures put in place are in line with changing market conditions and regulatory developments.

Exclusion of liability

While HMF commits to use all reasonable care in the performance of its duties under the Exchange Rules, neither HMF nor its Associated Entity will be in any way liable or responsible to any Users for any loss or liability arising from any act, default, omission or misconduct of HMF, except to the extent caused by its own gross negligence, fraud or wilful misconduct.

Records of trading

HMF is required to keep records of its operation of HashKey (MENA) and its dealings with Client Money and Virtual Assets of Trading Participants, and retain records in respect of transactions conducted in its systems, including:

details of the Trading Participants;
details of any restriction, suspension or termination of the access of any Trading Participants to HashKey (MENA);
all notices and other information provided by HashKey (MENA) to the Users; and
routine daily and monthly summaries of trading in its systems.

Such information may be disclosed to third parties including the VARA, other regulators, law enforcement authorities and/or relevant Issuers as required from time to time.

Discretion of HMF

HMF may in its absolute sole discretion exercise powers granted under the Exchange Rules and applicable laws, including but not limited to accepting or rejecting any application or instructions. Unless as required under applicable laws, HMF will not give reasons for the exercise of any of its powers.

Forks

When a hard fork is imminent, HMF will notify Users of the event and how HMF will handle it through email and announcement on HashKey (MENA)’s website.
HMF will suspend deposit and withdrawal requests until the hard fork is completed. This is to avoid the unnecessary risk of asset loss due to hard fork related security events.
Depending on the specific events, HMF could suspend the trading of the Virtual Assets involved until the hard fork is completed.
HMF will update the product (e.g. name of Virtual Asset) according to the consensus of the general blockchain and Virtual Assets community.
HMF will take a snapshot of Trading Participants’ asset for the Virtual asset involved at the block height right before the hard fork or right at the time of the hard fork. HMF will then distribute the new Virtual asset generated from the hard fork to the Trading Participants involved.
HMF will provide deposit and withdrawal services for the new Virtual asset as a result of the hard fork. The new Virtual asset will be listed on HashKey (MENA) according to HMF's listing rules and policies.
HMF will provide 24/7 customer service with coverage aligned with exchange operation hours to cater for Trading Participants’ enquiries during a hard fork.

2.2 Listing Committee

HMF will implement listing-related due diligence procedures in respect of HashKey (MENA). HMF will do so via the Listing Committee HMF.

Composition

The Listing Committee will consist of the following members and any other person whom HMF’s directors deem appropriate, including but not limited to:

Managing Director, who will chair the Listing Committee; ("Chairperson")

Chief Risk Officer/Head of Risk;

Head of OTC Business;

Head of Exchange Business;

Head of Compliance/Compliance Officer

Chief Financial Officer

Group Head of Legal

The quorum for LISTING COMMITTEE meetings shall be more than half of the committee members. Decisions shall be determined by simple majority and, in the event of a tie, the chairperson of the meeting shall have the casting vote.

In the case of any conflicts of interest, a LISTING COMMITTEE member is required to excuse himself from voting in respect of any listing applications which he may be interested in. Nonetheless, such LISTING COMMITTEE member may still be counted in the quorum at any such meeting at which any such listing application shall be considered.

Power and duty

After the Listing Team has conducted preliminary due diligence on Issuer Applicants and their Listing Documents, the LISTING COMMITTEE has the responsibility for the deliberation and review of the potential Virtual asset listing on HashKey (MENA). It has the power to:

a. make decisions of material significance regarding Issuers, Issuer Applicants and the individuals concerned. These include approvals of listing applications, the imposition of any conditions if approvals are granted for the listing of Virtual Assets and cancellations of listings; and

b. act as a review body for listing recommendations made by the Listing Team and has the final say regarding whether to approve the potential Virtual asset listing asset listing on HashKey (MENA).

The chairperson of the LISTING COMMITTEE shall report to the board of directors of HMF on different areas of the activities of the LISTING COMMITTEE at the next meeting of the HMF board of directors following a meeting of the LISTING COMMITTEE.

Section 3 About the Exchange Rules

3.1 Application

The terms of the Exchange Rules are applicable to HMF and all Users.

3.2 Status

The Exchange Rules govern all Users. HashKey (MENA) will take into account the Exchange Rules in exercising its powers, functions and responsibilities hereunder or that are provided for by applicable laws.

3.3 Procedure where none laid down

In case no specific procedure is laid down in the Exchange Rules in connection with any actions required under the Exchange Rules, an application for directions should be made to HMF. Such direction shall be determined in the sole discretion of HMF.
Actions performed in accordance with such directions of HMF shall constitute valid performance of such actions.

3.4 General provisions

Time is of the essence

Time is of the essence in the performance of the Exchange Rules by Issuers, Issuer Applicants, Trading Participants.

Severance

If at any time any provision of the Exchange Rules is, or becomes, illegal, invalid or unenforceable in any respect, the legality, validity and enforceability of the remaining provisions of the Exchange Rules shall not be affected or impaired.

Variation of these Exchange Rules

HMF will provide a prior notice as soon as practicable to any amendment or variation of the Exchange Rules. Any variation to the Exchange Rules shall be binding only if it is in writing and is published on the official website of HashKey (MENA). Users who object to the amendments or variation will be given an opt-out option to terminate their Account and should send written objections to HMF within fourteen (14) Business Days after the publication of such amendment notice at HashKey (MENA)’s website, failing which acceptance shall be deemed of such amendment, deletion, substitution or addition.

Third parties

These Exchanges Rules does not create or confer any rights or benefits enforceable by any person not a party to it except HMF’s Affiliates and nominees, and any other indemnified party may enforce its rights or benefits in the Agreement, including any indemnity, limitation or exclusion of liability; and a person who is a permitted successor or assignee of the rights or benefits of HMF under the Agreement may enforce those rights or benefits. Notwithstanding the foregoing, no consent from the persons referred to in this Clause shall be required for the parties to vary or rescind the Agreement (whether or not in a way that varies or extinguishes rights or benefits in favor of those third parties).

Governing laws

The Exchange Rules shall be governed by, and construed in all respects in accordance with, the laws, regulations and directives that apply in the United Arab Emirates.

Part B - Listing

Section 4 Listing Criteria

4.1 General requirements

To allow HMF to perform due diligence on Virtual Assets, set out below is a non-exhaustive list of general requirements and information which an Issuer Applicant shall provide to HMF before its Virtual Assets may be approved to be listed on HashKey (MENA) for trading:

Background of management, development team, and any of its known key members;
Regulatory status of Virtual Asset in major jurisdictions;
Supply, demand, maturity and liquidity of Virtual Asset; Technical aspects of the Virtual Asset;
Development of the Virtual Asset;
Market and governance risks of the Virtual Asset;
Legal risks associated with the Virtual Asset;
Utility offered, novel use cases facilitated, technical structural or crypto economic innovation, or administrative control exhibited by the Virtual Asset and supporting information on viability of the project not dependent on continuous inflow into the Virtual Asset;
Enforceability of any rights extrinsic to the Virtual Asset (for example, rights to any underlying assets) and the potential impact of the Virtual Asset’s trading activity on the underlying markets; and
Assessment on the money laundering and terrorist financing risks associated with the Virtual Asset.

4.2 Minimum requirements only

HMF endeavours to ensure that the decision-making process regarding the listing or removal of Virtual Assets from HashKey (MENA) is fair. Nonetheless, the listing requirements stated herein represent the minimum requirements only, and HMF may impose additional requirements as appropriate in approving the listing of any Virtual Assets on HashKey (MENA).

Section 5 Listing Procedure

5.1 Application procedure

Preliminary application review

The Issuer Applicant should complete the application form provided by HMF (by email) and upon receipt, HMF will assess the admissibility of the Issuer Applicant and the relevant Virtual Assets.

Full listing review

Upon the passing of the preliminary review, HMF will provide the Issuer Applicant a comprehensive list of required information and documents according to the class of underlying assets of the Virtual Asset. Once HMF has received the fully-completed application pack from the Issuer Applicant, HMF will conduct a full listing review, including identifying any money laundering and terrorist financing risks which may arise in relation to the development and use of the relevant Virtual Assets, services, business practices and technologies for both new and pre-existing products.

5.2 Documents and information required

An application for listing shall be at least accompanied by copies of the following documents:

Whitepaper: HMF will scrutinise all materials relevant to the offering including published information such as the whitepaper and any relevant marketing materials, as well as any projects associated with the Virtual Asset as set out in its whitepaper and any previous major incidents associated with its history and development.
Legal opinion: Written legal advice in the form of a legal opinion or memorandum on the legal and regulatory status of every Virtual Asset that will be made available to Users, in particular, whether that Virtual Asset falls within the definition of “securities” , and the implications for HMF.
Smart Contract Audit: Smart contract audit report conducted by an independent assessor focused on reviewing and confirming the smart contract is not subject to any contract vulnerabilities or security flaws to a high level of confidence.
Listing Document: please see Section 7 below for details.

5.3 Interview and further information or document

HMF may require an Issuer Applicant to attend interviews, give presentations or provide any additional information or documents which HMF at its sole discretion considers to be necessary or relevant to assess the listing application.

5.4 Due diligence

HMF will perform all reasonable due diligence on all Virtual Assets before including them on HashKey (MENA) for trading, and to verify that they continue to satisfy all listing criteria in accordance with the Listing Policy and Procedures and internal governance documentation. The Issuer Applicant agrees that HMF may at its sole discretion decide to engage independent experts to verify or assess the application and the Issuer Applicant authorises HMF to disclose information and documents obtained from the Issuer Applicant to such experts.

5.5 Declarations and undertakings

HMF may require an Issuer Applicant to make a declaration or undertaking in respect of the listing application in a separate agreement to be entered into between HMF and the Issuer Applicant.

5.6 Listing conditions

HMF may attach to a listing any conditions that HMF considers appropriate, and vary or revoke the condition(s) when deemed necessary upon listing or at any time the Virtual Asset is listed on HashKey (MENA).

5.7 Listing fees and costs

Issuer Applicants shall pay such listing fees and charges as HMF may prescribe and set out prior to the full listing application review. HMF shall have the right to waive all or part of the listing fees or charges at its sole discretion. Unless otherwise agreed by HMF, all listing fees and charges paid are non-refundable in any event.
The Issuer Applicants shall be solely responsible for their own costs and expenses incurred in relation to the listing application regardless of the outcome.

Section 6 Withdrawal of listing application

An Issuer Applicant may withdraw a listing application by notifying HMF through email according to the terms and conditions as may be prescribed by HMF.
HMF may at its sole discretion discontinue to assess any listing application but shall give the lssuer Applicant written notice (including via email).

Section 7 Listing Document

7.1 Information in Listing Document

A Listing Document should provide a concise and user-friendly summary, in plain language, of the key features and risks of a Virtual Asset, including but not limited to the information listed in this Section. HMF may change or require additional information on a case-by-case basis in its sole discretion:

Name and type of Virtual Asset;
Name of Issuer Applicant;
All approvals obtained from the applicable regulatory authorities
The business, financial position, management and prospects of the Issuer Applicant, including:
1. Where applicable, all relevant corporate and financial documentation of the Issuer Applicant;
2. Where applicable, particulars and operating history of the Issuer Applicant;
Key features of the Virtual Asset:
1. What is the product and how does it work;
2. What are the key risks;
3. What is the material technology that supports the Virtual Asset, upon which its operation and/or transferability relies, including any relevant consensus protocol;
4. Any information that is specific to its product class;
Where applicable, detailed documentation in respect of the Virtual Asset and the underlying asset;
an investigation of the blockchain protocol of the Virtual Asset;
an investigation of the security of the Virtual Asset;
an investigation of the financial metrics of the project;
Project description (if applicable);
Key features of the project, covering the leading project team, business model, technical development, token economy and community and other important information (if applicable); and
the risk assessment which includes the project due diligence conducted covering all the items from section 4.2 where not already provided.

7.2 Statements in Listing Document

The Listing Document should detail the nature and risks that Trading Participants may be exposed to in trading Virtual Assets and using HashKey (MENA).
In addition, a Listing Document must contain the following statement (or other statement for Virtual Assets that are securities, as HMF considers appropriate) in a prominent position:

“HashKey MENA FZE (“HMF”) is not the issuer of the Virtual Asset and did not prepare or compile this document. Therefore, HMF is not responsible for the contents of this document, makes no representations as to its accuracy or completeness and is not liable for any loss howsoever arising from or in reliance upon any part of the contents of this document. Investors should exercise caution, read and understand the contents of this document, and obtain appropriate professional advice before investing. The listing of the Virtual Asset at HashKey (MENA) does not translate to HMF’s recommendation or endorsement of any Virtual Asset, nor does it guarantee the commercial merits of a Virtual Asset or its performance. It does not mean the Virtual Asset is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.”

7.3 Approval for dissemination

No party must disseminate the Listing Document unless and until HMF has approved the application.
HMF’s approval of the application is not a recommendation or endorsement of a Virtual Asset nor does it guarantee the commercial merits of a Virtual Asset or its performance. It does not mean the Virtual Asset is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. HMF takes no responsibility for the contents of the Listing Document and makes no representation as to its accuracy or completeness.

7.4 Amendment and variation of Listing Document

An Issuer shall submit relevant information and supporting documents to HMF for any changes related to the Virtual Asset or contents of a Listing Document. The changes should only be implemented and published after endorsement by HMF is obtained.

7.5 Distribution of Listing Document

Listing Document shall only be distributed through such means as approved by HMF.

Part C – Continuing Obligations and Responsibilities of Issuers

Section 8 Notification requirement

8.1 Issuer’s obligation to notify

An Issuer has the obligation to immediately notify HMF of:

any change in control of the Issuer, including a change in any entity which controls the composition of the Issuer’s board of directors, controls more than half of the voting rights in the Issuer, or holds more than half of the Issuer’s issued share capital;
any material change in the Issuer’s corporate information, business and financial position;
any information that may reasonably be expected to materially affect market activity and/or price of any Virtual Asset that it issues;
any change in particulars submitted to HMF in its initial application and Listing Document, including any change in any Virtual Asset that it issues;
any proposed hard fork, upgrade, token migration, token split, token merge, rebranding, or air-drop;
any regulatory action or court proceedings taken against the Issuer;
any statutory demand (or other equivalent demand to repay debt in the relevant jurisdiction) issued against the Issuer or its affiliates;
any other circumstances which may adversely affect the interests of Trading Participants holding the Virtual Asset listed by the Issuer; and
any other circumstances which may adversely affect an Issuer’s ability to carry out its obligations under the Exchange Rules or applicable laws.

8.2 Disclosure to the market

The Issuers shall proactively liaise with HMF to publish on HashKey (MENA) notifications to Trading Participants of the relevant material information for each Virtual Asset, including providing Trading Participants with access to up-to-date offering documents or information, and providing Trading Participants with material information as soon as reasonably practicable to enable Trading Participants to appraise the position of their investments (for example, any major events in relation to a Virtual Asset or any other material information provided by Issuers).

8.3 HMF’s rights to request information

HMF may make enquiries to, or request further information from, an Issuer regarding its Virtual Asset from time to time. Issuers shall respond to such enquiries or requests of HMF promptly within the prescribed timeframe set out in HMF’s notice of request.

Section 9 Payment of fees

All Issuers shall pay all fees associated with the use of HashKey (MENA) as agreed with HashKey (MENA) from time to time or so specified by HMF, otherwise HMF may delist its Virtual Assets from HashKey (MENA).

Section 10 Financial information

Subject to the type of Virtual Asset and as notified by HMF, an Issuer shall submit to HMF its audited annual financial statements within 1 month from its issuance and/or a valuation report of the underlying asset to the satisfaction of HMF, and/or any other information reasonably requested by HMF.

Section 11 Maintenance of eligibility

As long as its Virtual Asset is listed on HashKey (MENA), an Issuer has a continuing obligation to ensure the listing criteria and listing conditions (if any) are satisfied and that the Issuer is not otherwise prohibited from using HashKey (MENA) by operation of laws or other regulations.

Section 12 Self-reporting

Any obligation to report under these Exchange Rules shall be undertaken by an Issuer proactively without needing to be first demanded by HMF. In particular, the Issuer shall immediately report to HMF and cease trading on HashKey (MENA) if it has reason to believe that it does not meet the listing criteria or listing conditions (if any), or is otherwise under an obligation to cease trading pursuant to applicable laws.

Part D – Removal of Virtual Asset

Section 13 HMF’s power to remove a Virtual Asset from HashKey (MENA)

HMF may remove a Virtual Asset from HashKey (MENA) in accordance with the Listing Policy and Procedures or internal governance documentation.

13.1 Relevant circumstances

HMF may take into account the below circumstances while taking a decision to remove a Virtual Asset from HashKey (MENA):

implementation of new regulatory standards and other compliance issues;
the Token or Project Team posed significant regulatory risks, including but not limited to, that the Token constitutes a “security” in a jurisdiction and HashKey (MENA) is unable to and/or unwilling to prevent its users from that jurisdiction from holding and/or trading the Token;
blockchain or related technology becomes compromised or defective;
the Virtual Asset is no longer supported or maintained by the Issuer or others;
complaints by Users or other third parties, which are related to significant issues such as fraud;
the relevant Issuer conducts or is involved in any illegal activity(ies) within any jurisdiction(s), such as money laundering, fraud or pyramid selling;
any threatened, pending or active legal proceeding or Claim (whether civil, criminal, or administrative, formal or informal, or direct or indirect) against the Project Team;
the relevant Issuer is suspected of manipulating the market and the circumstances are serious;
the relevant Issuer’s team is unreachable within a specified period indicated to the Issuer;
any changes to project team members which HMF considers to have material adverse impact on the Virtual Asset or the underlying asset or project;
any core member of the Project Team has been found of significant fraud or deception, including but not limited to, misappropriation of the raised Tokens, unknown whereabouts of the Project development team, cease to support the Project technology, intentionally concealment of material facts of the Project, disclosure or creation of materially fraudulent, false or misleading information;
the dissolution of the project’s development team or resignation of core team members without the consent of the community, resulting in the inability to continue development;
there is a lack of liquidity in the Virtual Asset’s market over a time period to be determined as appropriate by HMF;
no order of the Virtual Asset is recorded over a time period to be determined as appropriate by HMF after initial listing;
the Issuer changes supply of the Virtual Asset without giving prior notice to HMF;
the Issuer unlocks the Tokens without fulfilling the commitment made in the whitepaper or in other forms;
the Issuer conducts a hard fork, token migration, token split, token merge, and rebranding of the Virtual Asset without giving prior notice to HMF;
the Project Team has caused significant losses to HashKey (MENA) and users caused by security issues in the main net or the contract, and the Project Team fails to reimburse HashKey (MENA) for the losses and/or compensating its users for the losses that they suffer;
other risks and hazards exist in a Project, such as hacking, coins stealing, concealment of additional issuance, and double spend attack;
market cap of the Virtual Asset drops below USD 1,000,000.
HashKey (MENA)’s daily average transaction volume of the Virtual Asset is less than USD100,000 or other equivalent tokens for more than 30 days;
there is no immediate action taken or solution given by the Issuer in the event of any crisis, as deemed by HMF, that is causing detrimental impact to HMF, HashKey (MENA) and/or the Trading Participants, including but not limited to, discovery of inaccurate information, technical issues on the Virtual Asset, security breach, etc.;
the Issuer conducts any activity(ies) that damages the reputation of HMF or HashKey (MENA), and adversely affecting the Trading Participants’ interest;
breach of these Exchange Rules which the breach cannot be or has not been cured within 14 days; or
other circumstance(s) that, in the sole discretion of HMF, is/are sufficient for removal of virtual asset from HashKey (MENA), including any circumstances which causes the virtual asset to be no longer eligible or appropriate to continue to be listed, and at the request of the VARA or applicable authorities.

13.2 Removal of Virtual asset from HashKey (MENA) Warning

Where appropriate and feasible, a warning (verbal or written) would first be given to the Issuer if any of the above events took place. A reasonable time period, usually about 14 days, would be given to the Issuer to mitigate and/or remedy the problem to the satisfaction of HMF. Failing which, HMF will take actions to remove the Virtual Asset.

Section 14 Removal of Virtual asset from Platform request

Any person, including the Issuer, may request HMF to exercise its power to remove a Virtual asset from HashKey (MENA). Nonetheless, the decision to remove a Virtual asset shall be made in the sole discretion of HMF taking into account the circumstances set out in Section 13.
The request should contain the following information:
1. the virtual asset involved;
2. details of any circumstances which warrant a removal;
3. copies of any documents that provide evidence that supports the request; and
4. name, email address and telephone number of the person submitting the request.

Section 15 Removal of Virtual asset from HashKey (MENA) Notification

HMF will notify Users for removal events by sending system messages and issue a removal announcement on HashKey (MENA)’s official website and the trading portal for Virtual Assets or projects that trigger the removal condition 7 days in advance. Any pending order received before the announcement date shall be executed within such period.

Section 16 Withdrawal of Virtual Assets upon removal

Within 30 days from the date of removal announcement and where possible, Trading Participants shall transfer the relevant Virtual asset to their personal wallets or other trading platform accounts. Trading Participants should ensure that their personal wallets or other trading platform accounts support the relevant Virtual Asset. HMF shall not be responsible for any loss or damage sustained by the Trading Participant arising from, or related to, the use of incompatible wallets or accounts. In certain instances for technical or compliance reasons HMF may decide to shorten the withdrawal period.
HMF will provide reasonable notice regarding the withdrawal on HashKey (MENA)’s official website and the trading portal. HMF is not liable for any loss or damage sustained by Trading Participants in circumstances under which a Trading Participant for any reason fails to withdraw the delisted Virtual asset before the deadline or fails to withdraw the Virtual asset due to events outside of HMF’s control.

Section 17 Transfer of Listing

An Issuer who wishes to conduct a transfer of listing from HashKey (MENA) to another virtual asset exchange platform will be treated as a removal and the Issuer shall submit a removal request in accordance with Section 14.

Section 18 Relisting

An application for the listing of a virtual asset on HashKey (MENA) which was previously listed on HashKey (MENA) will be treated as a new application for listing.

Part E – Trading Participants

Section 19 Type of Trading Participants

Trading Participants must submit and execute Orders at HashKey (MENA) through their Accounts and include the following categories:

Retail Investor. A Retail Investor means an Entity that is not an Institutional Investor or a Qualified Investor.

Qualified Investor. A Qualified Investor means—

an individual—

i. maintaining a cash holding of AED 500,000 supported by documentary proof of funds [e.g. bank statements] that illustrate relevant assets have remained, and will remain, liquid for a reasonable period of time and which shall be checked periodically; and

ii. has relevant knowledge in respect of Virtual Assets for the nature of the VA Activities to be provided, the manner of demonstration of which shall be defined by the VASP prior to offering any products or services and shall be demonstrated to VARA on request; or

a legal entity validly incorporated in the jurisdiction in which it is located—

ii. whose directors have relevant knowledge in respect of Virtual Assets for the nature of the VA Activities to be provided, the manner of demonstration of which shall be defined by the VASP prior to offering any products or services and shall be demonstrated to VARA on request.

Institutional Investor. An Institutional Investor means—

a. any Entity regulated by a competent financial services regulator in the jurisdiction in which it is located [including but not limited to CBMENA, the MENA Securities and Commodities Authority, the Dubai Financial Services Authority and the Financial Services Regulatory Authority of the Abu Dhabi Global Market];

b. any VASP;

c. any government with relevant knowledge in respect of Virtual Assets for the nature of the VA Activities to be provided, the manner of demonstration of which shall be defined by the VASP prior to offering any products or services and shall be demonstrated to VARA on request;

d. any institution which performs the functions of a central bank; or

e. any multilateral agency with relevant knowledge in respect of Virtual Assets for the nature of the VA Activities to be provided, the manner of demonstration of which shall be defined by the VASP prior to offering any products or services and shall be demonstrated to VARA on request.

Section 20 Eligibility

20.1 Individuals and institutions

To be eligible to be registered as a Trading Participant, the person or entity must:

acknowledge and agree that the products and services of HashKey (MENA) may be provided by HMF with the support of its affiliates;
be a natural or legal person or other body corporate with full legal capacity and authority to enter into this Agreement;
in the case of an individual, be at least 18 years old or of legal age specified by applicable law in your jurisdiction of residence for a binding contract;
in the case of an authorized person entering into these Terms on behalf of a body corporate, have all the necessary rights and authorities to bind such body corporate;
not be a citizen of, resident of, or located in, any of the non-prohibited jurisdictions published on the official website of HashKey (MENA) from time to time, or any jurisdiction where trading in the relevant Virtual assetis not permissible under applicable law, or reside in a country where the relevant products and services are inaccessible;
have passed all compliance checks by HMF (including but not limited to KYC, AML and Counter-Financing of Terrorism, and risk tolerance);
not be a Proscribed Person; and
have not previously been suspended or refused from using services provided by HashKey (MENA).

20.2 Other criteria

HMF may from time to time change or impose additional criteria regarding the eligibility of Trading Participants without prior notice.

Section 21 Application procedure

An application to register as a Trading Applicant may be made by following the process as set out in the Account Opening and Trading Rules.
After receiving all the required information, HMF will review the submitted information. During this process, HMF may ask for additional information from the Trading Applicant. The review will normally take 3 Business Days but may be longer depending on the circumstances. After the review, HMF will send feedback to the Trading Applicant by email.
Once an application has successfully passed HMF’s review, the Trading Applicant’s initial account will be formally converted into a client account capable of trading.
A Trading Participant is not allowed to open multiple accounts, unless these are in the form of sub-accounts.

Section 22 Document and information required

For the purposes of HMF’s KYC and AML processes, HMF may require a Trading Participant or Trading Applicant to provide the following information:
Documentary evidence of the Trading Participant’s or Trading Applicant’s true and full identity, and his/her financial situation, investment experience, investment objectives and beneficial ownership information.
Where a Trading Participant’s or Trading Applicant’s IP address is masked (for example, where access is via a virtual private network), the unmasked IP address, or else HMF may decline to provide services to that Trading Participant or Trading Applicant.
Information regarding the Trading Participant’s or Trading Applicant’s business and risk profile and conduct ongoing due diligence on the business relationship, including wherever relevant an IP address with an associated time stamp, geo-location data, device identifiers, Virtual asset wallet addresses, and transaction hashes.
HMF may also from time to time request information and documents to ascertain the identity, address and contact details of:

a. the person or entity (legal or otherwise) ultimately responsible for originating the instruction in relation to a transaction;

b. the identity, address and contact details of the person or entity (legal or otherwise) that stands to gain the commercial or economic benefit of the transaction and/or bear its commercial or economic risk; and

c. the instruction given by the person or entity referred to in paragraph (b)(i) above.

Where incomplete or suspicious information is provided, HMF reserves the right to reject, suspend or terminate the business relationship with the Trading Participant or Trading Applicant (as appropriate).

Section 23 Declaration, undertakings and deposit requirement

HMF may require a Trading Applicant to make a declaration or undertaking in respect of his/her application.
HMF may require a Trading Applicant to deposit a sum of fiat currency to HMF’s designated bank account from his/her bank account with a licensed bank in Dubai or supervised by a banking regulator of an eligible jurisdiction indicated by the VARA for remote onboarding, in order to verify the bank account information prior to the first trade. No interest will be paid on such deposit. The deposit will be credited to their ledger balance after the on-boarding procedures are completed.

Section 24 HMF’s decision

24.1 Decision subject to receipt of all required information

HMF will only process the application after all of the requested information and documents are received in the condition in its sole satisfaction.

24.2 Approval conditions

HMF may impose conditions when approving a Trading Applicant’s application which it considers appropriate, and vary or revoke the condition(s) when deemed necessary.
HMF and each Trading Participant, shall enter into a written client agreement which includes a provision stating that:

“In conducting any Virtual asset trading business activities, if we [HashKey MENA FZE] solicit the sale of or recommend any product including any Virtual Assets to you [the Trading Participant], the product must be reasonably suitable for you having regard to your financial situation, investment experience and investment objectives. No other provision of this agreement or any other document we may ask you to sign and no statement we may ask you to make derogates from this clause.”

Part F – Account Opening and Trading Rules

Section 25 Trading on HashKey (MENA)

HMF will follow the trading rules and trade verification procedures, which are briefly outlined below and as set out in detail in the Account Opening and Trading Rules, to provide Trading Participants with high-quality Virtual asset trading services and a first-class trading experience.
When the trading rules change, HMF will inform Users as soon as possible by system notification and announcement on HashKey (MENA)’s official website.
Upon becoming aware of events such as hard forks and airdrops, HMF will notify Trading Participants as soon as practicable.

Section 26 List of assets traded

The list of Virtual Assets traded on HashKey (MENA) is published on the official website of HashKey (MENA) and will be updated from time to time.

Section 27 Permitted investors only

As required by applicable laws, HMF may provide certain services or products on HashKey (MENA) only to Qualified Investors, Institutional Investors or such other permitted investors.
If a Trading Participant is an entity which in turn provides services or products of HashKey (MENA) to its clients, such Trading Participant must satisfy HMF that all such clients and end users of HashKey (MENA) are permitted investors under applicable laws.

Section 28 Pre-funded trades only

HMF will only execute a trade for a Trading Participant if there are sufficient Virtual Assets and/or fiat currencies in the Account to cover the intended trade.
HMF will not support trading outside HashKey (MENA) and routing of Orders to other trading platforms or exchanges.

Section 29 Trading channels

Trading Participants should place an Order on the trading portal of HashKey (MENA).
If a Trading Participant elects to place an Order through the API provided by HashKey (MENA), the API information and specifications can be found on the HashKey (MENA) official website.

Section 30 Trading time

Please refer to the HashKey (MENA) official website for trading time.

Section 31 Trading pairs

The list of trading pairs is published on the official website of HashKey (MENA).

Section 32 Order types and Order time limit

An Order can only be submitted by a Trading Participant to HMF on HashKey (MENA).

32.1 Type of Orders

Market Order: A market order is an order that does not specify a price. It is executed immediately upon entry. The size of the order that can be filled is dependent on the following conditions:

the amount of liquidity available
the price of the matching liquidity does not exceed the price band of the last executed price

Any unexecuted portion of a market order is cancelled immediately.

2) Limit Order: A limit order is an order that specifies an execution price. The fill price of a limit order cannot be higher/lower than the limit price if the order is a buy/sell order.

32.2 Order Time Limit

Valid Until Cancelled (GTC—Good Till Cancelled): Client GTC orders will remain valid until any of the following events occurs:

All the Orders are executed.
Trading Participants cancelled their Orders.
Orders are cancelled by the system. (For example: product removal)

2) Execute Immediately or Cancel (IOC—Immediate Or Cancel): An IOC order is executed immediately. Any portion of an IOC order that cannot be filled immediately will be cancelled.

Section 33 Order execution methodology

33.1 Order Verification Rules

To mitigate potential user mistakes in order placement, HashKey (MENA) adopts a transaction confirmation mechanism. The time involved below is expressed in time zone, i.e. UTC + 0 time.

When a Trading Participant places an Order, the HashKey (MENA) platform will provide the User with following information:

Order details:
1. Order type
2. Product
3. Quantity
4. Order time limit
Order estimation:
1. Transaction fee
2. Transaction net amount (after deduction of transaction fee)

Once the transaction is executed, it cannot be cancelled.

When the Order is successfully completed, the Trading Participant can review the following information about the Order on the platform:

Executed Time
Trading Symbol Name
Direction of the trade
Executed Price
Executed Volume
Fees
Total Volume of the order

33.2 Order Priority

The orders of the HashKey (MENA) platform are matched in the trading system according to price and then time priority;

Price Priority: Bid orders with higher prices are ranked higher and ask orders with lower prices are ranked higher.
Time Priority: Orders with the same price are ranked by their arrival time stamp. The earlier the order arrives at HashKey (MENA), the higher the ranking of the order.

33.3 Execution of Order

The procedures by which an Order is executed is set out in the Account Opening and Trading Rules.

(i) When you place a limit order, HashKey (MENA) will freeze the amount of asset that is involved in the order plus trading fee, i.e., either the maker or the taker fee, whichever is higher.

(ii) When you place a market order, HashKey (MENA) will determine if the available balance in trading account exceeds the total trading amount plus all necessary fees. Order entry will be blocked if the condition is not met.

(iii) When a buy order price and a sell order match in price, the maximal size of either orders that can be matched at the price will be executed. An order may be executed with multiple matching orders.

(iv) Once an order is executed, the price of that executed order (derived from the exchange's market data) will determine the Latest Price, which in turn establishes the price of Virtual Assets listed on the exchange.

33.4 Cancellation and amendment of Order

Trading Participants may submit a request to cancel any of their orders that are not fully matched on HashKey (MENA).

33.5 Conflicts of Interest

(a) HMF may provide services to employees of HMF and its group companies and affiliates who can qualify to trade on HashKey (MENA) (each referred to as a “Connected Party”).

(b) Trading Participants’ interests are crucial to HMF. In order to prevent conflicts of interest, HMF adopts the following best execution principles:

Price: Bid orders with higher prices are ranked higher and ask orders with lower prices are ranked higher.
Time: Orders with the same price are ranked by their arrival time stamp. The earlier the order arrives at HashKey (MENA), the higher the ranking of the order.

(c) In addition, HMF has internal governance documentation that regulates conflicts of interest. Such documentation applies to (including but not limited to) all employees and short-term and long-term consultants of the company. Once employees find a conflict of interest, they should report to their immediate supervisor or the compliance department of HMF immediately.

Section 34 Depositing and withdrawing Client’s fiat currencies and Virtual Assets

34.1 Deposit / Withdrawal Procedures

Two-factor authentication must be enabled before Trading Participants can deposit and withdraw Virtual Assets in their HashKey (MENA) account. The steps for deposit and withdrawal of Virtual Assets are set out in the FAQ of the official website of HashKey (MENA).

34.2 General Rules for Deposit/Withdrawal

Deposit

(i) Deposit of Virtual Assets: For deposit via personal wallet, the deposit transaction will be processed when a certain number of confirmations are reached and has completed HashKey (MENA)’s internal review. The deposit will then be credited and displayed automatically displayed on client’s account.

Whereas for deposit via Third Party Exchange, the deposit transaction will also require HashKey (MENA)’s internal review, which is subject to FATF’s Travel Rule Requirement.

Users are reminded to enter the correct deposit address as confirmed transactions on blockchain may be irreversible.

(ii) Deposits of fiat currencies (if and when applicable): Deposit transaction will be processed after the funds are received and cleared by our designated bank. The deposit will then be credited after it has completed internal review and displayed on the client's account.

Withdrawal

(i) Withdrawal of Virtual Assets: After the withdrawal application is accepted, the confirmation will be sent to the requesting Trading Participant which delivery time will depend on the speed of the blockchain network. Therefore, the time for the requesting Trading Participants to receive the requested Virtual Assets may vary from a few minutes to several hours or longer.

The Trading Participant should make sure the correct address is entered. Otherwise, HashKey (MENA) may not return the Client’s Virtual Assets.

(ii) Withdrawal of fiat currencies (if and when applicable): After the withdrawal application is accepted, the request amount will be accredited in the Trading Participant’s bank account after processing by our designated bank, however, this may be subject to the bank’s procedures.

Number of block confirmations for successful withdrawal application:

Block confirmation depends on network conditions. Delays may occur due to network congestion.

HMF and Associated Entity will not conduct any deposits and withdrawals of User’s Virtual Assets through any wallet address other than an address which belongs to the User and is whitelisted by HMF and Associate Entity, except under permitted circumstances specified by applicable authorities.

Section 35 Restricting, suspending, rejecting or cancelling Orders

In order to maintain the fair and orderly operation of HashKey (MENA), HMF may take the following actions as it considers appropriate:

Restrict or suspend trading of a Virtual asset on HashKey (MENA);
Reject or cancel any Orders; or
Freeze any accounts.

HMF may exercise its power under Section 35(a) in the following circumstances:

Mismatching;
Upon notice of any information that may reasonably be expected to materially affect market activity for and the price of any Virtual Asset;
Upon discovery of any market manipulative and abusive activities; or
Any other circumstances which in the sole discretion of HMF will impair the fair and orderly operation of HashKey (MENA).

Section 36 Clearing and settlement

HMF may designate a system for the purpose of providing clearing and settlement services. All Trading Participants shall settle all Orders through the system and comply with the terms and conditions of the system as notified to Trading Participants from time to time.
HMF may in its sole discretion determine a standard settlement period of each Virtual asset from time to time.

Section 37 Preferred banking partners

HMF may nominate such preferred banking partners as settlement bank(s), and all Trading Participants are encouraged to open an account with such bank(s). The preferred banking partner(s) will be announced through the user's account of HashKey (MENA).

Part G – Trading Halt, Suspension and Resumption of Trading

Section 38 Criteria and procedure of trading halt, suspension and resumption of trading

HMF reserves sole discretion to halt or suspend trading on HashKey (MENA) at such time and for such duration as it may determine in accordance with HMF’s internal policies, which provide the criteria and procedure for halting and suspending a Virtual asset from trading on HashKey (MENA), and the arrangements during trading suspension, outages and business resumption.

An Issuer whose Virtual asset is suspended from trading on HashKey (MENA) shall continue to comply with these Exchange Rules in so far as they are relevant to it.

Section 39 Notification of trading halt and suspension

If HMF exercises its power to halt or suspend a Virtual asset from trading on HashKey (MENA), HMF will notify Users through email, system notification and announcement on HashKey (MENA)’s official website.

Section 40 HMF’s decision

HMF’s decisions made under this Part G are conclusive and binding on the Users. Unless otherwise determined by HMF pursuant to applicable law, no loss or damage sustained by the Trading Participants shall be compensated by HMF and all such rights of the Users are irrevocably waived.

Part H – Custody of Virtual Assets

Section 41 Custody arrangement

HMF holds Virtual Assets on behalf of Trading Participants in a segregated account established by its Associated Entity.
HMF’s Associated Entity adopts security standards in accordance with industry best practices and international standards in relation to the custody of Virtual Assets. HMF has an insurance policy covering the risks associated with the custody of Virtual Assets held in both hot storage and cold storage.
The Associated Entity shall only receive, send, store or engage in other activities involving airdrops, hard forks or other derivatives, enhanced or forked protocols, token burns or buybacks, or other similar events, upon receipt of and in accordance with specific instructions of HMF, to the extent supported by the Associated Entity.
HMF will, through its Associated Entity, store no less than 90% of Trading Participants’ Virtual Assets in cold storage (Hardware Security Module (HSM)) (i.e. private keys are kept offline without access to the internet), in order to minimise exposure to losses arising from a compromise or hacking of HashKey (MENA). HMF endeavours to minimise transactions out of the cold storage in which a majority of Trading Participants’ Virtual Assets are held.

Section 42 Title to Virtual Assets

HMF appoints its Associated Entity as custodian of HMF relating to the storage of the Virtual Assets of Trading Participants. HMF and its Associated Entity has no right, interest, or title in such custodial Virtual Assets, except to the extent as provided in these Exchange Rules.

Section 43 Segregated accounts

43.1 Virtual Assets

All Trading Participants’ Virtual Assets are held in a segregated account (i.e. an account designated as a client or trust account) established by HMF’s Associated Entity for the purpose of holding client assets and are segregated from the assets of the Platform Operator and its Associated Entity.

For each type of Virtual Asset, the wallets in HMF’s Associated Entity’s client wallet system constitute:

hot wallet(s), which is further composed of individual client wallets and an aggregated client hot wallet; and
aggregated cold wallet(s), into which no less than 90% of that particular type of Virtual Asset should be stored.

43.2 Client’s fiat currencies

If and when deposits of fiat currencies are accepted on HashKey (MENA), HMF will ensure that accounts are appropriately segregated with a third-party bank who is appropriately and validly authorised to accept or take deposits in accordance with applicable laws and regulatory requirements as an authorised financial institution in MENA or another bank in another jurisdiction permitted under applicable laws from time to time. For safekeeping Client Money, into which fiat currencies received from or on behalf of a Trading Participant should be paid within one Business Day of receipt.

Part I – Prevention of market manipulation and abusive activities

Section 44 Identify market manipulative and abusive activities

HMF established and implemented internal governance documentation for the proper surveillance of HashKey (MENA) in order to identify, prevent, and report any market manipulative and abusive activities.
HMF also conducts post-trade monitoring to reasonably identify any:
1. suspicious market manipulative or abusive activities; and
2. market events or system deficiencies, such as unintended impact on the market, which call for further risk control measures.

Section 45 Reporting

Upon becoming aware of any market manipulative or abusive activities, whether actual or potential, on HashKey (MENA), HMF is required to notify the Financial Intelligence Unit Agency “FIUA” of such matter as soon as practicable, provide the FIUA with such additional assistance in connection with such activities as it might request and implement appropriate remedial measures.

Section 46 Market surveillance programme

HMF adopts a market surveillance system provided by a reputable and independent provider to identify, monitor, detect and prevent any market manipulative or abusive activities on HashKey (MENA).
HMF is required to provide access to this system for VARA/ the FIUA to perform its own surveillance functions when required.

Part J – Fees

Section 47 Fees to be published on website

The current fee schedule adopted by HashKey (MENA) could be found on the official website of HashKey (MENA) which will be updated periodically without prior notice, unless required under laws of Dubai.
In relation to admission, the fee structure is designed to avoid any potential, perceived or actual conflicts of interest. In relation to trading, HMF will charge a percentage of the transaction amount daily. Different fees may apply based on the type of Order (including whether a Trading Participant is providing or taking liquidity), transaction size and type of Virtual Assets transacted (if applicable). In relation to deposit and withdrawal, no deposit fee will be charged, and a different fixed withdrawal fee will apply based on the type of Virtual Asset.
HMF will transfer fees from the aggregated client hot wallet to HMF’s hot wallet daily at 00:00 (UTC+0 - Greenwich Mean Time).
HMF may in its sole discretion and where applicable waive, reimburse, or pay for Trading Participants’ on-chain transaction fees (i.e. gas fees), including fees for transferring between an individual client’s wallet and other internal wallets, and withdrawals from HashKey (MENA) as set out on the official website of HashKey (MENA).

Part K – Breach of these Exchange Rules

Section 48 HMF’s power to investigate

HMF may investigate any matter that relates to HashKey (MENA) on its own initiative or upon receiving a complaint or enquiry from any person.
Users under investigation shall promptly provide any necessary assistance to HMF during an investigation.
HMF will retain a record of all investigations conducted.

Section 49 Request to remedy

Where a User is found to have breached the Exchange Rules or to have conducted its business in a manner that is detrimental or prejudicial to other Users of HMF, HashKey (MENA) or the public, HMF may, at its sole discretion, request the breaching User to remedy the breach.
For the avoidance of doubt, HMF may impose other penalties on the breaching User, and there is no obligation on HMF to allow the breaching User to remedy the breach.

Section 50 Penalties

HMF may impose any of the following penalties on the breaching User:

public reprimand;
suspension of account;
termination of account; or
any other penalty in the discretion of HMF which is permissible under applicable laws.

Part L – Security of HashKey (MENA)

Section 51 Security measures

HMF employs adequate, up-to-date and appropriate security controls to protect HashKey (MENA) from being abused, including:
1. robust authentication methods and technology to ensure that access to HashKey (MENA) is restricted to authorised persons only;
2. up-to-date data encryption and secure transfer technology, in accordance with industry best practices and international standards, to protect the confidentiality and integrity of information stored on HashKey (MENA) and during transmission between internal and external networks;
3. up-to-date security tools to detect, prevent and block any potential intrusion, security breach and cyberattack attempts; and
4. adequate internal procedures and training for HMF’s employees and regular alerts and educational materials for Trading Participants to raise awareness of the importance of cybersecurity and the need to strictly observe security in connection with the system.
HMF also has in place effective controls to enable it, where necessary, to:
1. prevent “fat finger” errors such with respect to as input limits or thresholds for Order price and quantity;
2. immediately prevent HashKey (MENA) from accepting Orders which are, for example, suspicious fraudulent trades initiated by hackers; and
3. cancel any unexecuted Orders.

HMF will arrange at least annual technology audits by a qualified independent professional to ensure the adequacy, reliability, security and capacity of HashKey (MENA).

Section 52 System Maintenance and Interruptions

52.1 System Maintenance Arrangements

1. When HMF needs to perform system maintenance, the following measures will be taken:

a. evaluating the impact, start time and estimated end time of the maintenance in advance;

b. notifying Users of the impact, start time and estimated end time of the maintenance as soon as possible though email, SMS, system notification and announcement on HashKey (MENA)’s official website; and

c. notifying Users via email and announcement on website of HashKey (MENA) as soon as possible when the maintenance is over.

2. If system maintenance requires suspension of transactions, HMF will take the following measures:

a. evaluating the start time and estimated end time of trading suspension in advance;

b. notifying Users of the transaction suspension arrangements through email, SMS, system notification and announcement on HashKey (MENA)’s official website;

c. starting system maintenance and suspend transaction;

d. after the system maintenance has been completed, keeping the status of all Orders unchanged orchanging the status of all Orders to “cancelled”; and

e. when trading functions return to normal, notifying Users through email, SMS, system notification and announcement on HashKey (MENA)’s official website.

52.2 Unexpected Interruptions Handling

When the service or transaction is stopped unexpectedly due to technical reasons or other force majeure, HMF may take one or more of the following measures as appropriate:

suspending deposit and withdrawal temporarily;
cancelling all Orders in the Order book;
suspending trading function (including order placement, matching and cancellation);
suspending login;
suspending API functionality ; or
closing the website service temporarily; or
changing the status of all unfilled Orders to “cancelled”.

In the event there is a service or transactional interruption, HMF will inform Users by email, SMS, system notification and announcement on HashKey (MENA)’s official website.

Upon resumption of the service or transactional interruption, HMF will inform Users by system notification and announcement on HashKey (MENA)’s official website.

Part M – Contact, Complaint Procedures and Dispute Resolutions

Section 53 Contact information of HashKey (MENA)

Users can reach the Client Service Team via email at global-complaints-hmf@hashkey.com

Section 54 Complaint procedures

Any complaint should be submitted to HMF through the official website of HashKey (MENA) in accordance with HashKey (MENA)’s Complaint Handling Procedure published on its official website.
HMF will acknowledge receipt of complaints and review them for possible follow-up action. HMF is committed to dealing with complaints quickly. However, the period of time required for following up on the complaints depends on the circumstances of each case.
All enquiries and complaints are treated in strict confidence. However, if circumstances require, HMF may need to disclose information to relevant authorities, regulators or agencies for further follow-up. HMF will seek the enquirer’s or complainant's consent before disclosing any personal information.

Section 55 Dispute resolution

Any dispute, controversy, difference or claim arising out of, or relating to, the Exchange Rules, including the existence, validity, interpretation, performance, breach or termination thereof or any dispute regarding non-contractual obligations arising out of, or relating to, it shall be referred to and finally resolved by arbitration administered by the HKIAC under the HKIAC Administered Arbitration Rules in force when the Notice of Arbitration is submitted. The law of this arbitration clause shall be Hong Kong law. The seat of arbitration shall be Hong Kong. The number of arbitrators shall be three. The arbitration proceedings shall be conducted in English.

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