4.8.1. Content and form of the white paper

(1) A Digital Asset white paper for a Fiat stablecoin must contain all of the following information:

(a) information about the issuer of a Fiat stablecoin;

(b) information about the Fiat stablecoin;

(c) information on the rights and obligations attached to a Fiat stablecoin;

(d) information on the underlying technology used to operate the Fiat stablecoin;

(e) information on risks;

(f) information on the reserve of assets;

(g) the method and all factors used to calculate the value of reserve assets; 

(h) the initial value and composition of the reserve assets;

(i) the conditions and the procedure to purchase stablecoins and redeem such stablecoins against reserve assets; 

(j) details of the arrangements for the custody and management of the reserve assets;

(k) the rights provided to holders of the stablecoin;

(l) a summary of the redemption policies; and

(m) any other information that the AFSA requires..

(2) All information in the white paper referred to in (1):

(a) must be fair, clear and not misleading;

(b) must not contain material omissions; and

(c) must be presented in a concise and comprehensible form.

(3) The white paper must not contain any assertions on the future value of the Fiat stablecoin.

(4) The white paper must contain a clear and unambiguous statement that:

(a) the Fiat stablecoin may lose their value in part or in full;

(b) the Fiat stablecoin may not always be transferable; and

(c) the Fiat stablecoin may not be liquid.

(5) The white paper for a Fiat stablecoin must contain a statement from the management body of the issuer of a Fiat stablecoin confirming that the white paper complies with the requirements of this Part and that, to the best knowledge of the management body, the information presented in the white paper:

(a) is in accordance with the facts; and

(b) makes no material omission likely to affect any decision to participate in the Fiat stablecoin.

(6) The white paper must contain a summary that in brief and non-technical language provides key information about the offer to the public of the Fiat stablecoin or about the intended admission of the Fiat stablecoin to trading on a Digital Asset Trading Facility.

(7) The summary must be presented and laid out in easily understandable words and in a clear and comprehensive form, using characters of readable size.

(8) The format and content of the summary of the white paper must provide, in conjunction with the white paper, appropriate information about the characteristics of the Fiat stablecoins concerned in order to help potential holders of the Fiat stablecoins to make an informed decision.

(9) The summary must indicate that:

(a) the holders of a Fiat stablecoin have a redemption right at any moment; and

(b) the conditions of redemption.

(10) The summary must contain a warning that:

(a) it should be read as an introduction to the white paper; and

(b) the potential holder should base any decision to purchase a Fiat stablecoin on the content of the whole white paper.

(11) Before the publication of the white paper no marketing communications or Financial Promotions can be made. This restriction does not affect the ability of the issuer of a Fiat stablecoin to conduct market soundings.

4.8.2. Modification of the white paper

(1) Issuer of a Fiat stablecoin must inform in writing the AFSA of any intended change of the issuer of a Fiat stablecoin’s business model likely to have a significant influence on the purchase decision of any actual or potential holder of a Fiat stablecoin, which occurs after the authorisation or approval of the white paper. Such changes may include:

(a) the governance arrangements, including reporting lines to the management body and risk management framework;

(b) the reserve assets and the custody of the reserve assets;

(c) the rights granted to the holders of a Fiat stablecoin;

(d) the mechanism through which Fiat stablecoins are issued and redeemed;

(e) the protocols for validating the transactions in Fiat stablecoins;

(f) the functioning of the issuer of a Fiat stablecoin’s proprietary DLT, where the Fiat stablecoins are issued, transferred and stored on such a DLT;

(g) the mechanisms to ensure the liquidity of Fiat stablecoins, including the liquidity management policy for issuers of Fiat stablecoins;

(h) the arrangements with third parties, including for managing the reserve assets and the investment of the reserve, the custody of reserve assets, and, where applicable, the distribution of Fiat stablecoins to the public;

(i) the complaint handling procedure; or

(j) the money laundering and terrorist financing risk assessment and general policies and procedures.

(2) The AFSA must be informed in writing 30 working days before the intended changes take effect.

(3) The AFSA must grant its approval or refuse to approve the draft modified white paper within 30 working days following the acknowledgement of receipt.

(4) During the examination of the draft modified white paper, the AFSA may request an issuer of a Fiat stablecoin to provide any additional information, explanations or justifications on the draft modified white paper.

(5) If the AFSA requests additional information, the time limit of 30 working days must commence only when the AFSA has received the additional information requested.

(6) Where approving the modified white paper, the AFSA may require the issuer of Fiat stablecoins:

(a) to put in place mechanisms to ensure the protection of holders of Fiat stablecoins, when a potential modification of the issuer of a Fiat stablecoin’s operations can have a material effect on the value, stability, or risks of the Fiat stablecoins or reserve assets;

(b) to take any appropriate corrective measures to address concerns related to financial stability, the smooth operation of payment systems, or market integrity.

4.8.3. Liability of issuers of Fiat stablecoins for the information given in the white paper

(1) If an issuer of a Fiat stablecoin or its management or supervisory bodies has breached requirements set out in DAA 4.8.1(2), by providing in its white paper or in a modified white paper information which is not complete, fair or clear or by providing information which is misleading, a holder of such Fiat stablecoins or bodies can claim for damage arising from the breach.

(2) To demonstrate that the issuer has breached DAA 4.8.1 (2), a holder of Fiat stablecoin must present evidence indicating that the issuer of Fiat stablecoins has breached DAA 4.8.1(2) and that such breach had an impact on the holder’s decision to buy, sell or exchange the said Fiat stablecoin.

(3) No claim for damages arising from information provided in a summary (whether in its original form or as translated) may be made by a holder of Fiat stablecoins unless:

(a) the summary is misleading, inaccurate or inconsistent when read together with the other parts of the white paper; or

(b) the summary does not provide, when read together with the other parts of the white paper, key information in order to aid potential holders when considering whether to purchase such Fiat stablecoins.

4.8.4. Publication of the white paper

(1) Issuer of a Fiat stablecoin must publish on its website its white paper as approved and as modified.

(2) The approved white paper must be publicly accessible by no later than the starting date of the offer to the public of the Fiat stablecoins or the admission of those tokens to trading on a Digital Asset Trading Facility.

(3) The approved white paper and the modified white paper must remain available on the issuer of a Fiat stablecoin’s website for as long as the Fiat stablecoin is available to the public.