Dubai’s cryptocurrency regulator has taken the decision to suspend the license of the BitOasis crypto exchange

The initial crypto exchange to obtain an operational license in Dubai, BitOasis, has had its license suspended by the local regulator due to its failure to meet crucial conditions within the stipulated timeframe.

Dubai’s cryptocurrency regulator has taken action against BitOasis by suspending its license due to the exchange’s failure to meet the mandated conditions within the specified timeframes. The Virtual Assets Regulatory Authority (VARA) issued alerts on July 10, stating that enforcement measures were initiated against BitOasis and that the Dubai-based firm is under review.

BitOasis was granted a conditional license on April 12, allowing it to operate as long as it fulfilled certain key conditions within 30-60 days. However, VARA stated that these conditions were not met, without providing specific details.

As a result, BitOasis’s “License for Institutional and Qualified Retail Investors” is currently deemed “non-operational” until the outstanding conditions are fulfilled, according to the regulator.

In May, BitOasis received the first “minimum viable product operational license” from VARA, enabling it to offer broker-dealer services to qualified institutional and retail investors in Dubai. However, this license represents a preliminary step before obtaining a full market product (FMP) license, which has not yet been issued to any firm by VARA.

In order to apply for the FMP license, BitOasis will need to satisfy the conditions outlined in its current license, as explained by VARA.

VARA has taken further action following its previous reprimand of Su Zhu and Kyle Davies, co-founders of the collapsed crypto hedge fund Three Arrows Capital. Their activities in operating and promoting the unlicensed OPNX crypto exchange in Dubai caught VARA’s attention. As for BitOasis, VARA has stated that it will continue to oversee the situation to ensure compliance with regulations. In response, BitOasis addressed the regulatory concerns regarding their Operational MVP License for serving institutional and qualified retail investors. They expressed their commitment to working closely with VARA to meet the remaining requirements. BitOasis also emphasized that the issues with their Operational MVP license do not affect other services, such as broker-dealer services for existing retail users.