On July 10, the emirate’s Virtual Asset Regulatory Authority (VARA) issued a market alert stating that it had initiated enforcement action against BitOasis cryptocurrency exchange BitOasis.
BitOasis is one of the largest customer-centric crypto platforms in the Middle East.
Dubai regulators are on alert
According to the WarnBitOasis is under review for “failing to meet mandatory conditions, which are required to be met within a 30-60 day time frame before being allowed to conduct any VARA regulated market activity.”
BitOasis was granted its first “Minimum Viable Product Operating License” in Dubai, earlier this year, but this license may be revoked by the regulator.
The Dubai regulator stated that it “exercises its authority to supervise and monitor compliance,” adding that enforcement actions could include “holding BitOasis’ license status as non-operating.”
The license allows the company to provide broker and dealer services for crypto assets to qualified retail and institutional investors from its headquarters in Dubai.
According to its website, BitOasis, which operates in 14 countries in the Middle East and North Africa (MENA) region, accounts for more than $3 billion in trading volume.
Last year, the exchange laid off 5% of its employees due to recession and market turmoil.
This is not the first time Dubai regulators have issued warnings and reprimands. In April, VARA issued a reprimand to Kyle Davies and Su Zhu, the co-founders of bankrupt crypto hedge fund Three Arrows Capital.
In May, the regulator reprimanded OPNX founders Mark Lamb and Sudhu Arumugam, as well as its CEO Leslie Lamb, for conducting disorderly activities.
In late June, Dubai-based cryptocurrency exchange Bybit obtained a minimum applicable product preparatory license from VARA. Bybit has also cut staff during the cryptocurrency market.
Crypto Market Outlook
Markets are up slightly, but volume is still low, and trading is still sideways. Total capitalization is $1.23 trillion at the time of writing, after an increase of 1.6% on the day.
Bitcoin surged to $31,000 briefly during late trading on July 10, but was unable to sustain that level and fell sharply to yesterday’s levels around $30,400.
Ethereum is up 1.3% today at $1,881 at the time of writing. Binance Coin (BNB) and Polygon (MATIC) performed well, gaining 5% and 8% respectively.
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