The announcement conveyed by Dubai’s Virtual Assets Regulatory Authority (VARA) revealed suspending BitOasis license that allowed the firm to offer a crypto exchange in the region. The move by the local regulator amounts to a U-turn to deny the first licensed platform permit to offer digital assets-related services.
The statement issued on Monday, July 10, faulted BitOasis for failure to satisfy the key conditions within the timeframes provided by the Dubai authority. The Monday 10 communication featured two alerts informing the investors of undertaking enforcement action and scrutinizing the Dubai-based firm.
VARA Suspends License Until BitOasis Meets Conditions
VARA confirmed suspending the conditional license it granted BitOasis on April 12. The operating license obligated BitOasis to satisfy primary conditions within 1-2 months. The local regulator held that the firm failed to meet the requirements before the lapse of the set-out timeframe.
The statement by VARA was noncommittal on the conditions that BitOas failed to meet. Nonetheless, the statement obligated BitOasis to fulfill the conditions to restore its license for institutional and qualified retail investors (IQRI).
BitOasis had lauded VARA’s move to grant its operational license identified as the minimum viable product permit in May. The permit allowed the firm to offer retail and institutional investors broker-dealer services. The services were limited only to qualified investors.
Dubai Regulator’s Stringent Approach to Tame Rogue Crypto Exchange Operators
VARA explains that the conditional license is the ultimate phase in the multistep process before the service provider is granted the full market product (FMP) license. VARA clarified that it is yet to issue the FMP license to the firm. VARA clarified that BitOasis must satisfy the requisite conditions stipulated in the current license though suspended, for it to apply for the FMP license.
The stringent approach portrayed by VARA portrayed the commitment by the authority akin to the April move when it reprimanded Kyle Davies and Su Zhu. VARA faulted their involvement as co-founders of the Three Arrows Capital (3AC) crypto hedge fund.
VARA condemned the pair for their involvement in promoting and operating the OPNX crypto exchange without seeking the mandatory license to operate in Dubai.
BitOasis Commits to Resolve the Unmet Conditions to Restore Operating License
VARA reiterated that it would prioritize monitoring BitOasis to guarantee regulatory compliance remediation. BitOasis acknowledged the obligation in a Tuesday, July 11 publication. The blog post suggests that BitOasis will address regulatory concerns regarding the operational MVP license regarding the institutional and qualified retail investors by collaborating with VARA.
The crypto exchange indicates that suspending the operational MVP license will not interfere with delivering other services. It assured its users’ community that it would offer broker-dealer services to existing retail investors.
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