BitOasis’ License Suspended in Dubai Over Non-compliance Allegations

<p>Dubai's digital asset regulator, the Virtual Asset Regulatory
Authority (VARA), has suspended BitOasis, a cryptocurrency trading platform,
from operating in the region. VARA announced the suspension yesterday (Monday),
accusing the trading platform of failing to meet necessary regulatory
requirements.</p><p>BitOasis was issued a
Minimal Viable Product (MVP) license by the regulator on April 12. The license
allowed the company to offer broker-dealer services, according to the
information on the regulator's website. The services included enabling traders to buy and sell cryptocurrencies and access digital wallet services.</p><p>Citing Non-compliance</p><p>However, the license was issued
on the condition that BitOasis meet certain requirements which were not disclosed
by the regulator in the press release. The crypto <a href="https://www.financemagnates.com/terms/t/trading-platform/">trading platform</a> reportedly
did not meet the requirements, which was given a timeline of between 30 to 60 days,
forcing the regulator to suspend the license.</p><p>"The entity's
license for institutional and qualified retail investors remains
non-operational until the aforementioned conditions are fulfilled for BitOasis
to apply for the full market product (FMP) license," VARA <a href="https://www.vara.ae/en/regulations/regulatory-notices/market-alert-2-bitoasis-technologies-fze-bitoasis/" target="_blank" rel="follow">stated</a>. </p><p>An MVP license is granted as a preliminary step before the issuance of a more comprehensive license called a full
market product (FMP) license, both of which are issued by VARA. Some of the notable companies that have since
received an MVP license include Bybit, OKX, and Binance.</p><p>Two weeks ago, <a href="https://www.financemagnates.com/cryptocurrency/binance-mulls-over-middle-east-focus-amid-regulatory-pressure-in-the-west/" target="_blank" rel="follow">Finance
Magnates</a> reported that
Bybit had <a href="https://www.financemagnates.com/cryptocurrency/bybit-secures-authorization-in-dubai-amid-regulatory-reshuffle/" target="_blank" rel="follow">obtained
an MVP license</a> to offer limited services in Dubai. The exchange <a href="https://www.financemagnates.com/cryptocurrency/bybit-reports-50-users-jump-establishes-global-headquarters-in-dubai/" target="_blank" rel="follow">moved
its headquarters</a> to the region in April with plans to organize hackathons in partnership with local companies and to launch educational programs as well as entrepreneurial initiatives.</p><p>Dubai's Crypto Regulatory
Landscape</p><p>Similarly, the largest
cryptocurrency exchange by trading volume, Binance, is focusing on <a href="https://www.financemagnates.com/cryptocurrency/binance-mulls-over-middle-east-focus-amid-regulatory-pressure-in-the-west/" target="_blank" rel="follow">strengthening
its operations</a> in Dubai to counter the regulatory challenges it faces in the global market. The
General Manager of Binance Dubai, Alex Chehade, recently commented in a
conversation with Cointelegraph that Dubai had favorable regulations.</p><p>Even as more cryptocurrency companies apply for licenses to operate in Dubai because of the favorable regulatory environment, VARA is keen on protecting investors in the region.</p><p>The
regulator <a href="https://www.vara.ae/en/regulations/regulatory-notices/vara-notice-of-written-reprimand-opnx-exchange-opnx-com/" target="_blank">reprimanded</a> OPNX, a company which claims to allow investors
to trade <a href="https://www.financemagnates.com/terms/b/bankruptcy/">bankruptcy</a> claims for collapsed companies such as FTX, for allegedly
operating an unregulated platform. In May, VARA issued a cease-and-desist order to OPNX's Founders, Kayles Davis and Su Zhu, who founded the defunct
crypto hedge fund, Three Arrows Capital (3AC).</p>

This article was written by Jared Kirui at www.financemagnates.com.