Dubai’s cryptocurrency regulator, Virtual Assets Regulatory Authority (VARA), has suspended BitOasis’ license. BitOasis is a cryptocurrency exchange that operates in the Middle East.
On Monday, July 10, the authority released a market notice outlining the current supervisory restrictions and the enforcement steps against BitOasis.
In April, BitOasis received a Minimum Viable Product Operational license, also called MVP license, from VARA, a preliminary license. The company was permitted to conduct business in the area, given that it satisfied key conditions within 30-60 days.
However, Vara’s notice read that due to BitOasis’ failure to comply with these requirements within the allotted time frames, the crypto regulator has started necessary regulatory measures against the company. The authority warned that the company’s license for “Institutional and Qualified Retail Investors” will remain inactive if the requirements are unmet. The issuing of a Full Market Product (FMP) license in Dubai is the result of a multi-step process that culminates in the issuance of this license.
Additionally, VARA has not yet granted any entity an FMP license. According to the authority, BitOasis must fulfill the requirements of its current license to submit an application for the FMP license. It also clarified that it would keep an eye out for BitOasis’ compliance with regulatory requirements and execution of the corrective measures imposed upon it.
BitOasis, which acquired the license in April, said it works closely with VARA. It also noted that the permit mainly includes institutional and qualified investors. According to a blog post, it intends to continue offering broker-dealer services to its current retail users. It would only onboard new customers once all the VARA standards have been met.
Understanding VARA’s Role in the Dubai Virtual Assets Industry
Dubai is highly regarded for accommodating amid a sea of nations with hazy or nonexistent legislation surrounding cryptocurrency. It is one of the few countries in the MENA region with clearly defined objectives and rules for the cryptocurrency sector. In March 2022, the Dubai Virtual Assets Regulation Law was announced by Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai and the UAE’s vice president and prime minister.
The law provided an advanced legal framework for the virtual asset (VA) industry to encourage ethical business growth. The Dubai Virtual Asset Regulatory Authority (VARA), which oversees the virtual assets industry in Dubai, issued its eagerly awaited rulebooks on February 7, 2023.
The UAE has stated that it wants to become a significant hub for cryptocurrencies. However, it has done so in light of recent incidents that have damaged the industry’s credibility. VARA is paving the road for Dubai-based VASPs to stand out internationally as highly dependable businesses in the VA sector by allowing them to operate inside a framework that sets strict regulatory standards.
