BitOasis, the initial crypto exchange to obtain an operational license in Dubai, has had its license suspended by the local regulator due to failure in meeting essential conditions within the specified timeframe.
Dubai’s cryptocurrency regulator has suspended the license of BitOasis, a crypto exchange, for not meeting the required conditions within the specified timeframes.
On July 10, the Virtual Assets Regulatory Authority (VARA) issued two alerts, revealing that enforcement action has been initiated against BitOasis, a Dubai-based firm. VARA is currently reviewing the situation involving the company.
BitOasis’ Conditional License Revoked by VARA
The Virtual Assets Regulatory Authority (VARA) stated that BitOasis, granted a conditional license on April 12, was allowed to operate as long as it fulfilled “key conditions” within a timeframe of 30-60 days. However, VARA found that these conditions were not met, leading to the revocation of BitOasis’ license.
VARA did not specify the exact conditions that BitOasis failed to meet. However, until the required conditions are fulfilled, the firm’s “Licence for Institutional and Qualified Retail Investors” remains non-operational, as stated by the regulator.
In a blog post from May, it was mentioned that BitOasis received the city’s first “minimum viable product operational license” from VARA, enabling it to offer broker-dealer services to qualified institutional and retail investors in Dubai.
License Progression and Requirements for BitOasis Explained by VARA
VARA clarified that the license granted to BitOasis represents the final step in a series of stages before obtaining a Full Market Product (FMP) license. Presently, VARA has not issued any FMP licenses to any firm. To be eligible for an FMP license, BitOasis must fulfill the conditions outlined in its current license, as outlined by VARA.
VARA’s recent action follows their reprimand of Su Zhu and Kyle Davies, co-founders of the failed crypto hedge fund Three Arrows Capital, who were found operating and promoting the unlicensed OPNX crypto exchange in Dubai.
Regarding BitOasis, VARA stated its intention to monitor the situation and ensure compliance with regulatory requirements.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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