Dubai’s Cryptocurrency Authority Halts BitOasis Exchange Operations

In a recent development, the Virtual Assets Regulatory Authority (VARA) in Dubai has taken action against the crypto exchange BitOasis, suspending its license due to the company’s failure to meet specified conditions within the designated timeframes.

On July 10, VARA issued two alerts, stating that enforcement measures were being taken against BitOasis and that a review of the Dubai-based exchange was underway.

BitOasis had obtained a conditional license on April 12, which allowed the exchange to operate under the condition of meeting certain key requirements within 30-60 days. However, VARA determined that BitOasis had not fulfilled these conditions, leading to the suspension of its “Licence for Institutional and Qualified Retail Investors,” rendering it non-operational.

Although VARA did not disclose the specific conditions that BitOasis failed to meet, the exchange must address these issues in order to reapply for a Full Market Product (FMP) license, the final step in the licensing process.

BitOasis had previously received one of the city’s “minimum viable product operational licenses” from VARA, enabling the provision of broker-dealer services to qualified institutional and retail investors, as highlighted in a blog post in May. However, no FMP license has been issued by VARA to any firm thus far.

This recent action by VARA follows its reprimand of Su Zhu and Kyle Davies, co-founders of the now-defunct crypto hedge fund Three Arrows Capital. In April, they were found to be operating and promoting their new OPNX crypto exchange in Dubai without the necessary license.

VARA has emphasized that it will continue to monitor BitOasis’ situation for regulatory compliance remediation. CryptoGrafos reached out to both BitOasis and VARA for comment, but no response was received at the time of reporting.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you