Dubai’s cryptocurrency regulator has taken the decision to suspend the license of BitOasis, a crypto exchange, due to the exchange’s failure to fulfill the mandated conditions within the specified timeframes, according to an announcement by the Virtual Assets Regulatory Authority (VARA) on July 10.
VARA issued two alerts, confirming its enforcement action against BitOasis and revealing an ongoing review of the Dubai-based firm. BitOasis had been granted a conditional license on April 12, which permitted its operations subject to the fulfillment of key conditions within 30-60 day timeframes. Unfortunately, BitOasis failed to meet these conditions, leading to the suspension of its license.
The exact nature of the unmet conditions was not disclosed by VARA. As a consequence, BitOasis’ “License for Institutional and Qualified Retail Investors” has been rendered “non-operational” until the necessary conditions are satisfied, as stated by the regulatory authority.
BitOasis had previously received the first of Dubai’s “minimum viable product operational licenses” from VARA, enabling the exchange to offer broker-dealer services to qualified institutional and retail investors in the city, as outlined in a May blog post.
It is important to note that this license represents a crucial step in the multi-stage process before a Full Market Product (FMP) license can be issued. As of now, VARA has not granted any firm an FMP license.
To obtain the FMP license, BitOasis must adhere to the conditions specified in its current license, as explained by VARA.
This recent development follows VARA’s reprimand of Su Zhu and Kyle Davies, co-founders of the defunct crypto hedge fund Three Arrows Capital, in April. The duo had come under scrutiny for operating and promoting their new OPNX crypto exchange in Dubai without the necessary license.
VARA has stated that it will continue to monitor BitOasis’ situation to ensure regulatory compliance remediation.
Cointelegraph reached out to both BitOasis and VARA for comment, but as of now, no response has been received.
This suspension highlights the strict regulatory measures implemented by Dubai’s cryptocurrency regulator to maintain compliance within the crypto industry. As the crypto landscape continues to evolve, adherence to regulatory guidelines and requirements is essential for all participants. The suspension serves as a reminder to crypto exchanges to diligently meet their obligations and fulfill the necessary conditions set by regulatory authorities.
