By
Tolu Ajiboye
May 16th, 2024
VARA is exercising its authority to supervise and monitor compliance, assure fulfillment of prescribed conditions, impose remedial measures, and take necessary enforcement actions, including but not limited to holding BitOasis’ License status as non-operational.
Dubai cryptocurrency regulator, the Virtual Assets Regulatory Authority (VARA), has suspended the license of BitOasis because the exchange failed to fulfill certain conditions the regulator set within a specified timeframe.
BitOasis is a crypto exchange operating in Dubai, the United Arab Emirates. The exchange was founded in 2014 by Ola Doudin and is one of the earliest and most popular cryptocurrency exchanges in the Middle East and North Africa region. The VARA provides regulatory oversight to make sure exchanges operate within the scope of the law and in the best interest of the people.
The license VARA granted BitOasis in April was a Minimal Viable Product license, which permitted the exchange to operate if it could meet some requirements within 30 to 60 days, which the exchange failed to do.
VARA was not specific about the particular requirements that the exchange had failed to meet. However, as a result of the shortcoming, the exchange has become non-operational and cannot provide regulated retail or institutional services.
In an official statement on its website, the regulator said:
“VARA is exercising its authority to supervise and monitor compliance, assure fulfillment of prescribed conditions, impose remedial measures, and take necessary enforcement actions, including but not limited to holding BitOasis’ License status as non-operational.”
The MVP license prevents exchanges from having a full operation. Having this license shows that BitOasis met some initial requirements that allowed it to operate within specific limitations. The MVP is like an interim step in the full regulatory process. For BitOasis to have full operations, it has to meet certain conditions that will qualify it for a Full Market Product (FMP) license.
VARA will continue to make sure that BitOasis takes the necessary actions to comply with regulatory standards. The regulators also made it clear that the announcement is only to notify the public of what is going on and should not replace individual investors carrying out their own research when trying to choose an exchange to trade with.
Dubai Remains Crypto-Friendly Despite VARA Regulations
In April, Dubai regulators issued a warning to OPNX, a crypto exchange, accusing it of operating without a license and ordering the firm to immediately cease its activities.
Even though the regulator is doing its job and maintaining strict conditions that exchanges must meet, Dubai has remained one of the finest places for crypto and crypto exchanges. Coinbase and Ripple are currently looking at the possibility of establishing their presence in the region.
Some exchanges like Bybit, Binance, and OKX have gotten Dubai’s Minimal Viable Product license, which authorizes them to operate in the area.