Dubai’s Virtual Assets Regulatory Authority (VARA) sent a market alert on July 10. The notice states crypto exchange BitOasis did not fulfil the mandate conditions in the timeframe set out by VARA. However, the regulator has taken enforcement action against the exchange. It suspended the exchange’s MVP license.
Meanwhile, VARA has not disclosed those requirements. Authority is currently reviewing the exchange, as per the notice. Dubai issued an MVP license to BitOasis on April 12 this year. The regulations demanded that the exchange could only operate if it met certain conditions within a specified time of 30-60 days. However, BitOasis’ failure to comply with the stipulated conditions during this period led VARA to take action.
The VARA’s official statement noted:
As a result of BitOasis not meeting these mandated conditions within the prescribed timelines, VARA has initiated warranted regulatory actions against the entity.
MVP will remain inactive until the conditions are met. If BitOasis complies with the conditions, it can apply for a Full Market Product (FMP) license. FMP allows the exchange to function fully. The MVP license did not fully allow the exchange to operate in Dubai’s crypto market. This enabled BitOasis to provide services only to qualified institutional and retail investors in the country.
Moreover, VARA plans to represent the Emirate as a “regional and international hub” for cryptocurrencies. It also seeks to promote innovation, creativity, and ideas. Therefore, regulations are essential to prevent illegal activities and protect consumers.
Dubai Becomes a Hub For Crypto Firms
Dubai is considered one of the world’s leading crypto hubs due to its friendliness towards crypto and digital business. Many crypto companies have been moving to this region. By the end of June, Bybit obtained the MVP license from VARA. Earlier, crypto exchanges Crypto.com and OKX also got their licenses.
In September 2022, Binance also acquired the MVP license. Additionally, Ripple CEO Brad Garlinghouse recently disclosed that the firm wants to expand to Dubai. Regulators in the region grant licenses and welcome new firms. But they have also been strict about enforcing regulations.
On the other hand, in April 2023, Dubai issued a warning to the crypto exchange OPNX. Authorities accused the platform of operating without required licenses and regulations.