Key Takeaways
- VARA stated that BitOasis will not be eligible to apply for the Full Market Product License until it successfully meets all the necessary condition
- Currently, BitOasis’s License for Institutional and Qualified Retail Investors remains non-operational.
Dubai’s Virtual Assets Regulatory Authority (VARA) has recently taken regulatory action against BitOasis, a Dubai-based crypto firm, due to its failure to meet key conditions outlined in its conditional license. The punitive measures were announced in two alerts issued by VARA on July 10.
According to VARA, BitOasis had been granted an MVP (Minimally Viable Product) license on April 12, 2023. This license allowed the firm to conduct limited market operations for a period of 30 to 60 days. However, BitOasis was unable to fulfill the specified conditions within the given timeframe, resulting in VARA’s enforcement action.
The MVP license serves as an initial license that does not grant full operational capabilities in Dubai’s crypto market. VARA clarified that BitOasis will not be eligible to apply for the Full Market Product (FMP) License until it successfully meets all the necessary conditions. Furthermore, BitOasis’s License for Institutional and Qualified Retail Investors remains non-operational.
In its announcement, VARA further cautioned that the latest alert is merely a public notice and should not replace individual investors’ due diligence. VARA’s intensified regulatory scrutiny is evident in its recent actions against other entities in the crypto industry.
In April, the regulatory authority sent a written notice to the co-founders of Three Arrows Capital (3AC), a failed crypto hedge fund. The notice accused them of launching their new digital asset platform, Open Exchange or OPNX, without the required local license in Dubai. As a result, VARA issued a cease-and-desist order against OPNX and its operators, alleging that the platform was operating as an unlicensed and unregulated entity.
Despite the increased regulatory scrutiny, Dubai continues to attract crypto firms, aiming to foster the development of Web3 technologies. Bybit, Crypto.com, and OKX are among the many crypto firms that have obtained Dubai’s MVP license and are currently permitted to operate in the region.
