The Virtual Assets Regulatory Authority (VARA), the cryptocurrency regulator in Dubai, has taken action against BitOasis, a crypto exchange, by suspending its license.
The suspension was a result of BitOasis failing to meet the required conditions within the specified timeframes set by the authority.
BitOasis was granted a conditional license on April 12, allowing it to operate under certain conditions within 30-60 days.
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However, VARA revealed that the exchange did not fulfill these key conditions, although the specific details were not disclosed.
Consequently, BitOasis’ “License for Institutional and Qualified Retail Investors” has been deemed non-operational until the conditions are met.
Earlier, in May, BitOasis received one of Dubai’s “minimum viable product operational licenses” from VARA, enabling the exchange to provide broker-dealer services to qualified institutional and retail investors.
This license represents a crucial step in the process before obtaining a full market product (FMP) license. Presently, no firm has been granted an FMP license by VARA.
In order to apply for the FMP license, BitOasis must satisfy the conditions outlined in its current license, as clarified by VARA.
This recent action by VARA follows its previous reprimand in April, when it addressed the co-founders of Three Arrows Capital, Su Zhu and Kyle Davies, for operating and promoting their new OPNX crypto exchange in Dubai without the necessary license.
BitOasis, in a blog post on July 11, acknowledged the regulatory concerns regarding its Operational MVP License and assured that it is actively working with VARA to fulfill the remaining conditions.
The exchange also emphasized that the issue with its Operational MVP license does not affect other services provided to existing retail users, such as broker-dealer services.
Cointelegraph reached out to both BitOasis and VARA for comments but did not receive any responses at the time of publication. VARA stated that it will continue to monitor the situation to ensure compliance with regulatory requirements.
