BitOasis, a prominent Bitcoin exchange based in Dubai, has recently faced regulatory setbacks as its license was revoked by the Virtual Assets Regulatory Authority (VARA). The company failed to meet the necessary regulatory requirements within the specified timeframe, leading to enforcement action being initiated against it. BitOasis had received a conditional license on April 12, but VARA stated that the company was unable to commence operations unless certain key conditions were fulfilled within 30-60 days. Despite this opportunity, BitOasis fell short of meeting the undisclosed standards set by VARA, media reports said.
In May, BitOasis proudly announced that it had become the recipient of Dubai’s “minimum viable product operational license,” which allowed the company to offer broker-dealer services to eligible institutional and retail investors in the region.
However, the recent development indicates that the license awarded to BitOasis for institutional and qualified retail investors remains non-operational until further notice.
VARA has not yet granted a full market product (FMP) license to any company, and it clarified that BitOasis must comply with the terms of its existing license to be eligible for an FMP license in the future.
VARA’s regulatory actions haven’t been limited to BitOasis alone. In April, the authority publicly reprimanded Su Zhu and Kyle Davies, founders of the now-defunct crypto hedge firm Three Arrows Capital, for their involvement in operating an unlicensed cryptocurrency exchange called OPNX in Dubai.
As for BitOasis, VARA emphasized that it will continue to monitor the situation closely to ensure compliance with regulatory requirements. The revocation of the license serves as a reminder to cryptocurrency companies in Dubai and highlights the importance of meeting the necessary standards and adhering to regulations set forth by VARA.
BitOasis now faces the challenge of rectifying the issues that led to the license revocation, demonstrating its commitment to regulatory compliance before it can resume its operations and progress towards obtaining an FMP license.
