The Virtual Assets Regulatory Authority (VARA) in Dubai has suspended the operational license of BitOasis, the first crypto exchange to receive a license in the city. The suspension was issued due to BitOasis’ failure to meet key conditions within the specified timeframes set by the regulator.
BitOasis had obtained a conditional license on April 12, allowing it to operate under certain conditions over a period of 30-60 days. However, VARA stated that the exchange did not fulfill these conditions, leading to the suspension of its “License for Institutional and Qualified Retail Investors.” The regulator did not disclose the specific conditions that were not met.
This suspension affects BitOasis’ ability to provide broker-dealer services to qualified institutional and retail investors in Dubai. It also prevents the exchange from progressing to the next stage of obtaining a Full Market Product (FMP) license, which is the final step in the licensing process.
In order to reapply for an FMP license, BitOasis must satisfy the conditions outlined in its current license. VARA emphasized the need for regulatory compliance remediation and stated that it would continue to monitor the situation closely.
Notably, this action by VARA follows its previous reprimand of Su Zhu and Kyle Davies, co-founders of the collapsed crypto hedge fund Three Arrows Capital, for operating an unlicensed crypto exchange in Dubai.
BitOasis and VARA were contacted for comment but have yet to respond.
This development highlights the importance of adhering to regulatory requirements in the cryptocurrency industry, as regulators worldwide are increasingly scrutinizing exchanges and other crypto-related businesses. Compliance with regulations is crucial for maintaining trust and ensuring the long-term viability of the crypto ecosystem.
Overall, the suspension of BitOasis’ license by Dubai’s crypto regulator serves as a reminder to exchanges and other industry participants that strict adherence to regulatory obligations is vital for sustainable operations in the evolving landscape of cryptocurrency.