Dubai Cryptocurrency Regulatory Agency Suspends BitOasis Crypto Exchange License

BitOasis becomes the first crypto exchange in the UAE to be suspended for not complying with the country's domestic regulator in time.

The VARA noted that BitOais didn't meet the conditional agreements which the regulator established earlier on.VARA's revoking of BitOasis' operational license comes after the agency reprimands Su Zhu and Kyle Davies.

Dubai's Crypto Regulator Suspense BitOasis for Failing to Comply with Regulatory Standards

On July 10, the United Arab Emirates (UAE) Virtual Assets Regulatory Authority (VARA) issued two announcements.

In its reports, the agency noted that it had taken law enforcement action against the BitOasis cryptocurrency exchange and is currently reviewing the Dubai-based company.

VARA highlighted that it had offered the crypto exchange an operational license on April 12, enabling BitOasis to operate, providing it met main conditions over 30-60 days.

VARA didn't give full details regarding the conditions BitOasis failed to comply with. However, it said that until the exchange complied with the conditions, its License for Institutional and Qualified Retail Investors" would remain non-operational."

A BitOasis blog post also tallied with the VARA information of receiving its minimum viable product operational licenses" in May. The license permitted the crypto exchange to offer broker-dealer services to Dubai's eligible retail and institutional investors.

Legal entities hoping to operate in the UAE acquire the operational license as the last milestone before obtaining a Full Market Product (FMP) license. As of press time, VARA hasn't issued an FMP license to any entity yet.

VARA emphasized that BitOasis must meet the conditions outlined in its present license to file for the FMP license.

The VARA Reprimanding Crypto Entities

The incident of VARA revoking BitOasis' operational license comes after the agency reprimanded Kyle Davies and Su Zhu, the co-founders of the crashed cryptocurrency hedge fund company, Three Arrows Capital.

VARA sent two notices against the 3AC co-founders after they were caught operating and advertising their latest OPNX digital currency exchange in Dubai. The exchange had not obtained any license from the VARA.

Concerning BitOasis, VARA noted that it will continually inspect the situation for regulatory compliance amendments.

In response to the situation on July 11, BitOasis addressed regulatory compliance worries regarding the Operational MVP License regarding offering qualified retail and institutional investors.

The exchange explained that it is working closely with VARA to fulfill the remaining regulatory conditions.BitOasis also highlighted that the current issue with its Operational MVP license isn't connected to its other services, like broker-dealer services for retail customers.

The UAE has emerged as a hotspot for the crypto industry, providing favourable room for crypto entities to operate within its borders. It recently opened its borders to welcome cryptocurrency firms.

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