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BitOasis- Dubai’s first crypto exchange – has had its license suspended Yesterday due to failure to meet the key criteria during the stipulated time frame.
VARA Suspends License of BitOasis – Dubai’s First Crypto Exchange
Dubai’s Virtual Assets Regulatory Authority (VARA) has suspended the license of BitOasis for its failure to meet pre-mandated conditions within the time frame provided by VARA.
As per this blog, on July 10 at 16:15 (Gulf Standard Time), VARA issued an official notification stating that BitOasis’s Operational MVP License will now be suspended.
MVP License is known as the minimum viable product operational license which allows BitOasis to provide financial brokerage services to both institutional and retail investors.
BitOasis was the first crypto exchange in Dubai to have received this license.
Why has VARA Suspended BitOasis’ License?
BitOasis was granted a conditional license on April 12, issuing its permission to operate in Dubai and the Middle East. As per the conditional license, the exchange was given 30-60 days to meet certain conditions.
According to the notification issued by VARA, BitOasis has failed to meet those conditions, and the given time frame has also now expired.
It was not disclosed by VARA what constitutes these key conditions that BitOasis has failed to fulfill.
But the regulatory authority has taken a firm stand to rebuke BitOasis and keep its MVP license suspended until the exchange takes the necessary steps to meet the required conditions.
What is BitOasis?
BitOasis was established in 2015 as a pioneer in the MENA region’s cryptocurrency ecosystem. It is based in the UAE but operates all over the MENA region as the largest and most reliable crypto exchange platform. As per its official website, BitOasis serves as the go-to exchange to buy and sell cryptocurrencies for both new and experienced traders.
What Does BitOasis Say About The Suspension?
According to the official blog of BitOasis, its work regarding the fulfillment of selected MVP License conditions has been in the pipeline. It is stated to be working hand-in-hand with VARA to comply with the regulatory requirements to regain its license related to providing services to institutional and retail investors.
Dubai’s Virtual Assets Regulatory Authority #VARA issued a market notice on their website yesterday afternoon (10 July, 2023), stating that BitOasis’ Operational MVP License has been suspended due to BitOasis’ delay in fulfilling certain post-licensing conditions pic.twitter.com/J1RcM1qxqQ
— BitOasis (@bitoasis) July 11, 2023
BitOasis also emphasized that this suspension does not affect their ongoing services to provide brokerage to existing retail customers, and they will continue to do so. However, the exchange has stated not to take new clients until they have met the VARA conditions.
The crypto exchange also stated that transparency has been its key operational value and that they are committed to being a compliant crypto platform for better security and reliability of its clients.
Also, check out our list of the best cryptocurrency exchanges.
Testament to an Increasingly Strict Crypto Regulation
This action by VARA is a testament to the increasingly strict regulatory actions in the cryptocurrency industry in Dubai.
In April 2023, VARA issued a cease-and-desist notice against another crypto exchange called OPNX. It was alleged that OPNX was operating as an unregulated crypto exchange.
Will This Suspension Affect BitOasis’ FMP License?
VARA has made it clear that until and unless BitOasis complies with the current mandated requirement, its license for institutional and retail investors will be deemed ‘non-operational’.
The MVP license is a crucial step before a firm can obtain an FMP License (Full Market Product). So, according to VARA, until BitOasis fulfills the key conditions, it cannot apply for an FMP license.
BitOasis has commented that they are committed to working towards an FMP Licensing and thus will conform to all the regulatory requirements before applying for an FMP license.
It also stated that being a pioneer in the crypto space comes with challenges, and it is happy to tackle them head first to continue on its journey.
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