Dubai digital asset

The Virtual Asset Regulatory Authority (VARA) has suspended cryptocurrency exchange BitOasis from operating in the region.

The regulatory body accused BitOasis of not meeting the necessary regulatory requirements, which led to its suspension taking effect on July 10th.

BitOasis has been awarded a Minimum Viable Product (MVP) license from VARA on April 12, enabling the company to provide intermediary-dealer services. This license allows traders to buy and sell cryptocurrency and access digital wallet services through the platform.

However, the license was conditioned on BitOasis fulfilling certain undisclosed information requirements within 30 to 60 days.

However, BitOasis did not meet these requirements leading to the revocation of its license by VARA. Hence, the entity’s license for institutional and qualified small investors remains not operational until BitOasis fulfills the terms and conditions for the full market Product Licensing (FMP).

The MVP license is issued as an initial stage step before issuing a more comprehensive FMP license, both granted by VARA. Notable companies that have obtained the MVP license include Bybit, OKX, and Binance.

BitOasis, in response to the regulatory concerns, posted a blog post on July 11, acknowledging issues surrounding the MVP’s operating license for institutional and qualified small investors. The platform stated that it is actively working with VARA to fulfill the remaining conditions and immediately rectify the situation.

The crypto exchange has made it clear that the suspension of its MVP license does not affect its other services, such as the broker-dealer services for existing retail users.

Dubai encryption regulatory aesthetic view

It is worth noting that two weeks ago, Bybit obtained an MVP license to provide limited services in Dubai. Bybit moved its headquarters to the region in April, with plans to participate in a Hackathon in cooperation with local businesses and launch education programs and pioneering initiatives.

Similarly, Binance, the world’s largest crypto exchange by trading volume, has strengthened its operations in Dubai to overcome regulatory challenges in the global market.

While Dubai continues to attract cryptocurrency companies because of its favorable regulatory environment, VARA remains committed to protecting regional investors.

The regulatory power has also scolded OPNX, a company that claims to make it easier to trade bankruptcy claims for collapsed companies like FTX, for operating an unregulated platform.

In May, VARA issued a cease and desist order for OPNX co-founders Kayles Davis and Su Zhu, who were previously linked with the defunct crypto hedge fund Three Arrows Capital (3AC).