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.
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.
Citing Non-compliance
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 trading platform reportedly did not meet the requirements, which was given a timeline of between 30 to 60 days, forcing the regulator to suspend the license.
"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 stated.
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.
Two weeks ago, Finance Magnates reported that Bybit had obtained an MVP license to offer limited services in Dubai. The exchange moved its headquarters 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.
Dubai's Crypto Regulatory Landscape
Similarly, the largest cryptocurrency exchange by trading volume, Binance, is focusing on strengthening its operations 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.
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.
The regulator reprimanded OPNX, a company which claims to allow investors to trade bankruptcy 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).
