Dubai-based crypto exchange BitOasis recently became the subject of enforcement actions from local regulators. The government of Dubai’s Virtual Assets Regulatory Authority (VARA) issued a market alert regarding the regulatory action taken against the crypto exchange, as well as other supervisory controls.
According to a report by Bloomberg, the Virtual Assets Regulatory Authority reprimanded BitOasis for failing to meet the conditions set by it before the latter was granted a temporary license. As one of the largest crypto exchanges catering to crypto investors in the Middle East, the license allowed the exchange to conduct business in Dubai.
The market alert issued by the top crypto regulator in Dubai stated:
BitOasis is under review for not meeting mandated conditions, required to be satisfied within 30-60 day time frames prior to being permitted to undertake any VARA regulated market activity.
VARA had issued a minimum viable product (MVA) operational license to BitOasis in April 2023. The license came with mandated conditions that were supposed to be complied with as per predetermined timelines. The exchange’s failure to comply led to the enforcement actions by the local regulator.
The crypto regulator also suspended BitOasis’ license for Institutional and Qualified Retail Investors and warned that it would impose other remedial measures in the future if the crypto exchange failed to comply with local rules. The suspension of this license would also prevent BitOasis from applying for the Full Market Product (FMP) license.
At the time of writing, BitOasis hadn’t responded to enforcement actions by VARA. Earlier this year, rival crypto exchange Bybit also secured an MVP license from the Dubai crypto regulator. However, Bybit CEO Ben Zhou stated at the time, that the license only allowed the exchange to serve a very restricted set of accredited investors.
