s.25Enforcement powers of the Authority
25
Section 25Part 5 — The Authority: Powers and Enforcement

Enforcement powers of the Authority

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Without prejudice to any other action that may be instituted or taken against a virtual asset service provider, if at any time it appears to the Authority that a virtual asset service provider has failed to comply with any of the requirements under this Act , the Authority may, by written notice, direct the virtual asset service provider to comply with the requirement within such period of time and on such terms and conditions as the Authority may specify and the virtual asset service provider shall comply with the notice.
The Authority may take any of the steps listed in subsection
if it knows, or has reasonable grounds to believe, that a virtual asset service provider —
is, or appears likely to become, unable to meet its obligations as they fall due;
is carrying on business fraudulently or otherwise in a manner detrimental to the public interest, to the interest of its clients or to the interest of its creditors;
has contravened any provision of this Act , or of any regulations made hereunder, or of the Anti-Money Laundering Regulations (2023 Revision) ;
has failed to comply with a condition of the respective licence or registration;
has not conducted the direction and management of its business in a fit and proper manner;
has senior officers, trustees or persons who have acquired ownership or control who are not fit and proper persons;
is a “corporate services provider”, as defined in Part XVIIA of the Companies Act (2023 Revision) , Part 12 of the Limited Liability Companies Act (2023 Revision) or Part 8 of the Limited Liability Partnership Act (2023 Revision) , and has contravened that Part; or
has failed to comply with a lawful direction from the Authority. (3) The Authority may — (a) revoke the virtual asset service licence or a sandbox licence or cancel the registration; (b) impose conditions or further conditions upon the licence or amend or revoke any such conditions; (c) apply to the court for any order which is necessary to protect the interests of clients or creditors of the licensee or registered person; Section 25 Virtual Asset (Service Providers) Act (2024 Revision) (d) publish in the Gazette and in any official publications of the Authority, a contravention by any person of this Act , of any regulations made hereunder or of any lawful direction issued by the Authority; (e) at the expense of the virtual asset service provider, require the licensee or registered person to obtain an auditor’s report on the licensee’s anti -money laundering systems and procedures for compliance with the Anti-Money Laundering Regulations (2023 Revision) ; (f) require the substitution of any senior officer or trustee of the virtual asset service provider whenever appointed, or the divestment of ownership or control; (g) in the case of a reasonable belief that the virtual asset service provider has contravened the Anti-Money Laundering Regulations (2023 Revision) , report the same to the Director of Public Prosecutions; (h) require such action to be taken by the virtual asset service provider as the Authority reasonably believes necessary for the purposes of dealing with the circumstances referred to in paragraphs (a) to (g);
in the case of a virtual asset service provider who is also regulated or supervised for virtual asset services in another jurisdiction, notify the relevant regulator or government entity in the respective jurisdictions of the failure to comply with the directive of the Authority;
at the expense of the licensee, appoint a person to advise the licensee on the proper conduct of its affairs and to report to the Authority thereon; or
at the expense of the licensee, appoint a person who shall be known as the Authority’s appointed controller, to assume control of the licensee’ s affairs who shall, subject to necessary modifications, have all the powers of a person appointed as a receiver or manager of a business appointed under section 18 of the Bankruptcy Act (1997 Revision) .
Where the Authority decides to take action under subsections (3)
to (3)(i), it shall notify the virtual asset service provider in writing, specifying the following — (a) the action that the Authority has taken or intends to take;
the reasons for the action, with reference to statutory provisions, and when it is to take effect;
whether, in addition to the rights under paragraph
, the virtual asset service provider may make representations to the Authority within such period as may be specified in the notification; and (d) the licensee’s righ t to appeal under section 30 and the procedure therefor.
A person appointed under subsection (3)(j) or (3)(k) or whose appointment has been extended under subsection
(b) shall, from time to time at the person’s discretion and in any case within three months of the date of the appointment or Virtual Asset (Service Providers) Act (2024 Revision) Section 26 of the extension of the appointment, prepare and furnish to the Authority a report of the affairs of the licensee and of the recommendations thereon. (6) On receipt of a report under subsection (5), the Authority may —
revoke the appointment of the person appointed under subsection (3)(j) or (3)(k);
extend the period of the appointment;
subject to such conditions as the Authority may impose, allow the licensee or registered person to reorganise its affairs in a manner approved by the Authority; or
revoke the licence and apply to the court for an order that the licensee, if the licensee is a company, be wound up by the court in which case the provisions of the Companies Act (2023 Revision) relating to the winding up of a company shall apply.
Notwithstanding any other provision in this Act , the Authority may revoke a virtual asset service licence, a sandbox licence or cancel the registration if the licensee or registered person has ceased, or wishes to cease, carrying on virtual asset service, or has not commenced business within one year of the date of the grant of the licence or the registration.
Whenever the Authority revokes a licence or cancels a registration under this section, notice of such revocation or cancellation shall be published forthwith in the Gazette.

Cross References