The regulatory framework is focused on the risks that each virtual asset activity presents to the market, and seeks to provide virtual asset service providers (VASPs) with a "clear framework of rules which apply to their particular operations and business models, while maintaining a baseline market standard of compliance across core regulatory domains."

VASPs that fulfil VARA's licensing requirements will be required to comply with four Compulsory Rulebooks:

Company Rulebook;

Compliance & Risk Management Rulebook;

Technology & Information Rulebook; and 

Market Conduct Rulebook.

Additionally, seven activity-specific Rulebooks have been developed to cater for risks associated with the provision of each virtual asset activity:

Advisory Services Rulebook;

Broker-Dealer Services Rulebook;

Custody Services Rulebook;

Exchange Services Rulebook;

Lending & Borrowing Services Rulebook;

Payments & Remittances Services Rulebook; and 

Management & Investment Services Rulebook.

VASPs will be required to comply with each activity Rulebook only if they are licensed by VARA to offer the activity.

Project "Aber" aimed to provide a proof of concept to evaluate the feasibility of issuing a central bank digital currency for central banks to improve cross-border payments and reduce transfer times and costs between banks. The project was also meant to experiment with technologies such as distributed ledgers.

The two entities said that the results showed that the distributed ledger technology would enable central banks to develop payment systems at both local and cross-border levels.

The report on the project said:

"The project was successful in achieving its key objectives which include using a new DLT-based solution for real time cross-border interbank payments between commercial banks without the need to maintain and reconcile Nostro accounts with each other. This promises to address the inefficiency and costs that are inherent in existing cross-border payment mechanisms.

"In Aber, we were able to make a number of significant changes to the status quo of cross-border payments. Firstly, by creating a common CBDC for use between jurisdictions, we removed the need for Commercial Banks to maintain nostro accounts with their various cross-border counter-parties. Secondly, we implemented a system that, whilst requiring the Central Banks to issue and redeem CBDC, didn''t require the Central Banks'' systems to be running in order for cross-border payments to continue as this function was then distributed across  all the participating Commercial Banks (whilst still ensuring that settlement finality, privacy, and other considerations are met). Thirdly, the role of the Central Banks evolved in that they maintained nostro accounts with each other that was then used to fund the redeemed CBDC (when that CBDC was originally issued by that particular Central Bank)."