Dubai’s Virtual Assets Regulatory Authority (VARA) has issued a market alert regarding the local cryptocurrency exchange BitOasis.
According to the notice, BitOasis’ conditional MVP (Minimally Viable Product) license has been suspended due to non-compliance with the related requirements.
This development sheds light on the regulatory landscape for crypto activity in Dubai and highlights both permissive and restrictive measures in place.
BitOasis was granted an MVP license by Dubai on April 12, 2023, which allowed the firm to conduct market operations within limited 30 to 60-day periods.
However, the exchange failed to meet the stipulated conditions within the specified timeframes, resulting in the suspension of its license by VARA.
The MVP license is a preliminary license that does not authorize full operations in Dubai’s crypto market. VARA further clarified that BitOasis cannot apply for the Full Market Product (FMP) license until it fulfills the necessary conditions. Additionally, BitOasis’s license for Institutional and Qualified Retail Investors remains non-operational.
VARA has stated its commitment to monitor BitOasis’ compliance with remedial actions and regulatory benchmarks. The regulator emphasizes that the market alert serves as a public notice and should not replace the due diligence of individual investors.
The recent actions taken against BitOasis shed light on the regulatory developments governing crypto activity in Dubai.
In April 2023, Dubai issued a reprimand to another crypto exchange, OPNX, accusing it of operating as an unlicensed and unregulated platform and subsequently issuing a cease-and-desist order against the firm and its operators.
Despite these regulatory actions, Dubai, and the broader United Arab Emirates (UAE), are generally considered crypto-friendly regions.
Major players in the crypto industry, such as Coinbase and Ripple, have explored the potential of establishing a presence in the region as an overseas base.
Other crypto firms, including Bybit, Crypto.com, and OKX, have obtained Dubai’s MVP license, enabling them to operate in the area. Binance also secured the MVP license in September 2022 after initial attempts in March of the same year.
