July 11, 2023

Dubai’s VARA Suspends BitOasis’s License for Not Meeting Conditions

BitOasis

BitOasis

Dubai’s Virtual Assets Regulatory Authority (VARA) decided to suspend the license of crypto exchange BitOasis for not meeting mandated conditions.

In a press release, VARA issued two market alerts regarding ongoing supervisory controls and enforcement actions initiated against BitOasis. The Dubai-based cryptocurrency exchange was required to fulfill mandated conditions within 30 to 60 days to secure the MVP Operational Licence after it obtained the Licence for Institutional and Qualified Retail Investors on April 12 this year.

VARA did not explain which conditions BitOasis cannot meet, but it pointed out that its Licence for Institutional and Qualified Retail Investors is non-operational. But it pointed out that it shall continue to monitor the situation for regulatory compliance remediation.

In May BitOasis announced it got the first-of-its-kind operational MVP license from Dubai’s regulatory authority (VARA) after completing the final step in the MVP process. Under this license, BitOasis was allowed to offer virtual assets broker-dealer services to institutional and retail investors in Dubai under the VARA’s regulations.

In March, BitOasis announced it got Provisional Approval issued by VARA under which the company has been permitted to continue to operate its platform from Dubai whilst completing VARA’s rigorous licensing process.

In February, VARA issued new guidelines for virtual asset service providers to ensure economic sustainability and cross-border financial security.

According to a press release by the Government of Dubai, the Virtual Assets and Related Activities Regulations 2023 seeks to reach greater clarity on the expected level of operator responsibility by offering gold-standard risk assurance and Anti-Money Laundering (AML) standards, which all licensed entities in Dubai are expected to adhere.

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