Dubai’s virtual asset regulator, the Virtual Asset Regulatory Authority (VARA), has suspended cryptocurrency exchange BitOasis from operating in the region.
The regulatory body Accused BitOasis failed to meet the necessary regulatory requirements, prompting comment which took effect on July 10.
BitOasis obtained a Minimum Viable Product (MVP) license from VARA on April 12, enabling the company to provide broker and dealer services. This license allowed traders to buy and sell cryptocurrencies and access digital wallet services through the platform.
However, the license was contingent upon BitOasis fulfilling some unstated requirements within 30 to 60 days.
However, BitOasis did not meet these requirements, which led to the suspension of its license by VARA. Thus, the entity license for institutional and qualified retail investors remains non-functional until BitOasis fulfills the conditions and applies for a Full Market Product (FMP) license.
The MVP license is issued as an initial step before the more comprehensive FMP license is issued, both of which are granted by VARA. Notable companies that have obtained the MVP license include Bybit, OKX, and Binance.
BitOasis, in response to regulatory concerns, published a blog post on July 11, acknowledging the issues surrounding MVP’s operating license to serve institutional and qualified retail investors. The platform stated that it is actively working with VARA to fulfill the remaining conditions and promptly rectify the situation.
The cryptocurrency exchange has clarified that the suspension of its MVP license does not affect its other services, such as those of brokers and merchants for existing retail users.
Dubai’s cryptocurrency regulatory landscape
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 engage in hackathons in collaboration with local businesses and launch educational programs and entrepreneurial initiatives.
Similarly, Binance, the world’s largest cryptocurrency exchange by trading volume, has strengthened its operations in Dubai to overcome regulatory challenges faced by the global market.
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While Dubai continues to attract crypto firms due to its favorable regulatory environment, VARA remains committed to protecting regional investors.
The regulatory authority also reprimanded OPNX, a company that claims to facilitate commercial bankruptcy claims of insolvent companies such as FTX, for operating an unregulated platform.
In May, VARA issued a cease and desist order to OPNX co-founders Kayles Davis and Su Zhu, who were previously associated with defunct crypto hedge fund Three Arrows Capital (3AC).