In a startling development within the burgeoning Dubai cryptocurrency market, the Virtual Assets Regulatory Authority (VARA) has halted the operational license of the BitOasis crypto exchange. An announcement on the 10th of July disclosed that BitOasis had failed to meet crucial conditions set within the prescribed regulatory timelines.
BitOasis, praised as the first crypto exchange to secure an operational license in Dubai, finds itself in choppy waters now. Their conditional license, which was granted in April, articulated that the firm should achieve key milestones within 30-60 days. VARA, however, stated the crypto exchange fell short of these requirements.
The aforementioned conditions that BitOasis failed to meet have been kept under wraps by VARA. As a result, the firm’s “License for Institutional and Qualified Retail Investors” currently holds a ‘non-operational’ status. It is important to note that BitOasis was issued the region’s first “minimum viable product operational licenses”, sanctioning it to offer broker-dealer services to Dubai’s accredited institutional and retail investors.
This current setback is part of a greater journey towards obtaining a Full Market Product (FMP) license. Interestingly, at present, no firm has received such a license from VARA. For BitOasis to be considered for the FMP license, first, it must meet the conditions laid out in its present license.
This regulatory action by VARA comes after the similar incidents in April involving Su Zhu and Kyle Davies, co-founders of the now-defunct crypto hedge fund, Three Arrows Capital. The duo caught VARA’s attention for operating and promoting their new OPNX crypto exchange in Dubai without procuring the mandatory license.
For the time being, VARA has said it will “continue to monitor the situation for regulatory compliance remediation” about the BitOasis situation. Both BitOasis and VARA were contacted for comments on the situation, but there has been no immediate response from either side.
Dubai, in recent times, has noticeably warmed up to the world of cryptocurrencies with VARA leading the charge on regulatory matters. While these hiccups are expected in a rapidly developing landscape, how the authority navigates these challenges will undoubtedly set a precedent for future entrants into the market. Thus, the current BitOasis scenario has broader implications that extend far beyond the fate of this single crypto exchange.
Source: Cointelegraph
