Dubai’s virtual assets regulator suspends critical license for crypto exchange BitOasis citing regulatory non-compliance
Dubai’s Virtual Assets Regulatory Authority (VARA) issued a market alert for the next day. July 10 About the local cryptocurrency exchange BitOasis.
This notice indicates that BitOasis’ conditional MVP license has been suspended due to non-compliance with relevant requirements.
Dubai issued an MVP license to BitOasis on April 12, 2023, granting the company the ability to conduct market operations for a limited period of 30 to 60 days. However, BitOasis’ failure to meet the stipulated conditions within these timeframes has led to punitive action by VARA.
The MVP license, which stands for Minimally Viable Product License, is a preliminary license that does not allow full operation in the Dubai cryptocurrency market. VARA further stated that BitOasis cannot apply for a Full Market Product (FMP) license until it meets the necessary conditions. It also said BitOasis’ licenses for institutional investors and qualified retail investors are still “not operational.”
VARA said it will continue to monitor BitOasis’ corrective actions and compliance with regulatory benchmarks. The regulator explained that the warning is merely a public notice and does not replace retail investors’ own due diligence.
Dubai Attracts Other Crypto Firms
The latest action against BitOasis focuses on regulatory developments that have permitted and restricted cryptocurrency activity in Dubai.
In April 2023, Dubai issued an unrelated disciplinary action against another cryptocurrency exchange, OPNX. The company has issued a cease and desist order against the company and its operators, accusing the platform of operating as an unlicensed and unregulated platform.
Despite these recent regulatory actions, Dubai, and more broadly the United Arab Emirates (UAE), is often considered a crypto-friendly region. Coinbase and Ripple recently explored the region as a potential offshore location.
Other companies such as Bybit, Crypto.com and OKX also have Dubai MVP licenses and are now allowed to operate in the region. Binance also obtained an MVP license in September 2022 after attempting to obtain one in March of the same year.
CryptoSlate first reported that Dubai’s cryptocurrency regulator has suspended a key license for cryptocurrency exchange BitOasis, citing regulatory violations.
