- VARA had granted a preparatory license to BitOasis back in April.
- The preparatory license would remain non-operational for the time being.
Dubai’s cryptocurrency regulator suspended the license of the Dubai-based crypto exchange BitOasis on 10 July. The Virtual Assets Regulatory Authority (VARA), Dubai’s regulator, issued alerts on its website about its enforcement action against the exchange.
VARA had granted a preparatory minimal viable product (MVP) license to BitOasis back in April. The company could operate in the jurisdiction, given that it met “key conditions over 30-60 day timeframes.”
However, the financial regulator claimed that BitOasis failed to do so within the said period of time. VARA warned that unless the firm complies with the conditions, its license for “Institutional and Qualified Retail Investors” remains non-operational. This license is the final step in a multi-step procedure that leads to the issuance of a Full Market Product (FMP) license in Dubai.
VARA has so fat not given an FMP license to any entity. The regulator stated that BitOasis must meet the criteria of its present license in order to apply for the FMP license.
Amidst a sea of countries with ambiguous or non-existent regulations around crypto, Dubai is considered to be quite friendly. It is one of the few regions that have set out specific aims and guidelines regarding the crypto industry. The VARA intends to promote the United Arab Emirates (UAE) as a “regional and international hub” for virtual assets.
In June, crypto exchanges Bybit and OKX received the MVP Preparatory License. In March, Crypto.com also received the MVP license.
UAE: An emerging crypto hub
In October 2022, blockchain intelligence firm Chainalysis published a report focusing on crypto adoption across the world. It found that the Middle East and North Africa (MENA) region was among the top adopters of crypto.
Savings and remittance payments are the use cases that have been identified as the top contributors to MENA’s crypto volume. The UAE emerged as a significant crypto hub in the study.
BitOasis public policy manager, Akos Erzse, remarked at the time that crypto adoption in the region is “not just on the retail or customer side, but also in the ecosystem, with financial institutions and banks beginning to work with businesses like us.”
But it seems that the exchange has to tread troubled waters for some time now.
