Dubai’s Virtual Assets Regulatory Authority (VARA) issued a market warning on local Bitcoin and cryptocurrency exchange BitOasis on July 10, announcing the suspension of its conditional Minimally Viable Product (MVP) License. The regulatory authority took this step after BitOasis failed to meet licensing requirements. Here are the details…
Dubai Bitcoin exchange license suspended
BitOasis was granted an MVP license on April 12, 2023, allowing the firm to conduct limited market operations within certain periods of 30 to 60 days. However, the exchange’s failure to fulfill the stipulated conditions within the specified timeframes led to punitive measures by VARA. The MVP license is an associate license and does not authorize full-scale operations in Dubai’s crypto market. VARA has clarified that BitOasis will not be able to apply for a Full Market Product (FMP) License until it meets the required conditions. In addition, the exchange’s License for Institutional and Qualified Retail Investors remains inactive.
VARA stressed that BitOasis will continue to monitor its compliance with remedial actions and regulatory criteria. The regulator explained that the market warning is intended as a public notice and does not replace the need for individual investors to exercise due diligence. This latest development on BitOasis sheds light on the regulatory environment in Dubai that both enables and restricts cryptocurrency activities. In April 2023, Dubai issued a separate reprimand to another crypto exchange, OPNX, accusing the platform of operating without a license and regulatory oversight. A cease and desist order has been issued against OPNX and its operators.
Dubai takes a friendly approach to cryptocurrencies
Despite these regulatory actions, Dubai and the United Arab Emirates (UAE) as a whole are considered crypto-friendly zones. Coinbase and Ripple have recently explored the possibility of having a presence in the region as an overseas base. Several other firms including Bybit, Crypto.com and OKX have obtained Dubai’s MVP license and are now allowed to operate in the region. Binance also received its MVP license in September 2022, following their first attempt in March of that year.
Dubai’s regulatory framework continues to evolve in response to the growing cryptocurrency market. VARA’s actions against BitOasis underline the importance of regulatory compliance. It highlights ongoing efforts to strike a balance between facilitating crypto activities in the region and ensuring investor protection. It will be a matter of curiosity whether the stock market will regain its license in the coming period.
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