Dubai’s digital asset regulator, Virtual Assets Regulatory Authority (VARA), has taken a regulatory enforcement action against BitOasis, a prominent cryptocurrency exchange in the Middle East.
On July 10, 2023, VARA issued a market alert stating that it has suspended BitOasis’ operational licence and is currently conducting a thorough evaluation of the company.
BitOasis had previously received a conditional MVP Licence from VARA on April 12, 2023. This licence authorized the exchange to provide broker-dealer services for crypto assets to qualified retail and institutional investors from its Dubai headquarters. However, the licence also required BitOasis to meet specific conditions within a timeframe of 30 to 60 days in order to apply for a full market operations licence.
VARA stated that the suspension was imposed due to BitOasis’ failure to fulfil these required conditions within the specified timeframes. While the regulator did not disclose the specific conditions that were not met, it clarified that BitOasis’ licence for institutional and qualified retail investors will remain non-operational until those conditions are satisfied.
According to the regulator:
“The entity’s [BitOasis] Licence for Institutional and Qualified Retail Investors remains ‘non-operational’, until aforementioned conditions subsequently are fulfilled, in order for BitOasis to apply for the Full Market Product [FMP] Licence.”
This action follows VARA’s previous notification to Su Zhu and Kyle Davies, co-founders of Three Arrow Capital, regarding their operation and promotion of OPNX without obtaining the necessary local licence.
VARA accused OPNX of using social media platforms to gather personal information from the public and engage in its upcoming exchange, while disregarding the restrictions for Dubai/UAE residents.
VARA reportedly conducted an investigation into OPNX’s activities and has expressed its intention to enforce appropriate measures to address the firm’s violation of local laws.
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