The Virtual Assets Regulatory Authority (VARA) in Dubai has suspended the license of crypto exchange BitOasis for not adhering to the conditions set out by the authority within the specified timeframes. On July 10, VARA issued two alerts noting they had taken enforcement action against the Dubai-based firm.
VARA did not specify the exact conditions BitOasis had failed to meet, but until it can meet the required conditions, the firm’s “Licence for Institutional and Qualified Retail Investors” remains non-operational.
In May, the exchange was granted the first of the city’s “minimum viable product operational licenses” from VARA, which allowed them to provide broker-dealer services to Dubai’s qualified institutional and retail investors. However, in order to apply for the Full Market Product (FMP) license, BitOasis must first fulfill the conditions set out in their current license.
VARA’s action against BitOasis follows their April reprimand of Su Zhu and Kyle Davies – co-founders of the collapsed crypto hedge fund Three Arrows Capital – for operating and promoting their new OPNX crypto exchange in Dubai without the necessary license. VARA also noted they would continue to monitor the situation for regulatory compliance remediation.
