Dubai’s Virtual Assets Regulatory Authority has initiated enforcement action against UAE-based crypto exchange BitOasis.
The local regulator reprimanded the exchange for failure to comply with mandated regulatory conditions.
VARA has also revoked the MVP license which was granted to the crypto exchange in April 2023.
VARA’s MVP license was previously described as restrictive by fellow crypto exchange Bybit.
United Arab Emirates-based crypto exchange BitOasis found itself in regulatory trouble earlier today after Dubai’s Virtual Assets Regulatory Authority (VARA) initiated enforcement actions against it. VARA’s crackdown on the Middle East-focused crypto exchange was prompted by the latter’s failure to comply with mandated conditions within the timelines prescribed by the local regulator.
Dubai VARA Suspends BitOasis’ MVP License
The Virtual Assets Regulatory Committee issued a market alert earlier today, informing investors and customers of BitOasis about ongoing supervisory controls and enforcement actions against the crypto exchange. VARA’s reprimand comes just two months after the exchange was issued one of the Emirates’ first minimum viable product (MVP) operational licenses. The license paved the way for the exchange to secure a permit for market operations in the region pending the fulfillment of key conditions.
“BitOasis is under review for not meeting mandated conditions, required to be satisfied within 30-60 day time frames prior to being permitted to undertake any VARA regulated market activity.”
Virtual Assets Regulatory Authority
The local regulator has suspended BitOasis’ conditional MVP license and announced that the exchange’s license for Institutional and Qualified Retail Investors had become non-operational. This meant that the crypto exchange would have to work with the regulator to sort out the issues before applying for the Full Market Product (FMP) license. VARA noted in its market warning that it would monitor the situation for regulatory compliance and fulfillment of remedial actions imposed on the exchange.
BitOasis has not issued a statement to address the latest development in its Middle Eastern operations. Fellow crypto exchange Bybit was issued an MVP license by VARA last month. At the time, Bybit CEO Ben Zhou described the license as restrictive, adding that it only allowed the crypto exchange to cater to a very restricted set of accredited investors.