BitOasis was the very first crypto exchange to receive an operational license in Dubai, but it is currently suspended by the local authority for failing to meet crucial terms on time.
Due to BitOasis’ inability to fulfil the requirements under the specified deadlines, Dubai’s cryptocurrency regulator has suspended the exchange’s license.
On July 10, the Virtual Assets Regulatory Authority (VARA) released two notices announcing that it had begun enforcement action against BitOasis and was now examining the Dubai-based company.
According to VARA, BitOasis’ conditional license, issued on April 12, allowed it to function under the condition that “key conditions over 30-60 day timeframes” were completed, which the regulator claimed hadn’t been done.
BitOasis’ “Licence for Institutional and Qualified Retail Investors remains ‘non-operational,”according to the authority, even though VARA did not specify the standards that BitOasis had not fulfilled.
In May, BitOasis got VARA’s first “minimum viable product operational license” to provide broker-dealer services to Dubai’s qualified institutional and individual investors.
The license is the last step in a lengthy procedure that ends with the issuance of a Full Market Product (FMP) license. No company has yet received an FMP license from VARA.
In order to apply for the FMP license, BitOasis will have to comply with the conditions outlined in its present license, according to VARA.
The co-founders of the collapsed cryptocurrency hedge firm Three Arrows Capital, Su Zhu and Kyle Davies, were reprimanded by VARA in April. This is the organization’s latest action.
The duo came under VARA’s scrutiny for promoting and operating their unlicensed OPNX cryptocurrency exchange in Dubai.
VARA stated in regards to BitOasis that it will “continue to monitor the situation for regulatory compliance remediation.”