BitOasis said it is working with Dubai’s Virtual Assets Regulatory Authority (VARA) after the regulator suspended its operational license.
VARA stated that BitOasis failed to meet some conditions within 30 to 60 days of receiving the license in April.
VARA is the regulatory authority responsible for overseeing the virtual assets sector in Dubai, including special development zones and free zones.
Its establishment in March 2020 aimed to establish a robust legal framework that safeguards investors and upholds international standards within the industry.
VARA issues two types of licenses to virtual asset service providers: the minimum viable product (MVP) license and the full market product (FMP) license.
The MVP license allows for the release of an early version of a service to assess market fit and gather feedback. On the other hand, the FMP license represents a higher level of achievement that companies strive to attain, as stated on VARA’s website.
BitOasis secured an MVP license to provide broker-dealer services in Dubai from VARA earlier this year.
The platform said it planned to launch strategic partnerships in the UAE to provide qualified investors the opportunity to buy, sell and hold virtual assets on the platform and launch new virtual asset products with a focus on accessibility, consumer protection, and utility.
However, Vara said BitOasis’ MVP license was put on hold as part of its continuing supervisory controls of the virtual assets industry in the emirate.
BitOasis failed to meet certain mandated conditions within the 30 to 60-day period before VARA allowed it to engage in any VARA-regulated market activity, Vara stated.
While VARA did not specify what conditions BitOasis failed to meet, it said it is exercising its authority to supervise and monitor compliance, assure fulfillment of prescribed conditions, impose remedial measures, and take necessary enforcement actions, including holding BitOasis’ license status as non-operational.
The impact on BitOasis and its users
BitOasis confirmed its close cooperation with VARA to remediate all outstanding post-licensing conditions of its operational MVP license, as well as working towards an FMP license.
The platform reaffirmed its commitment to securing a broker-dealer license and operating a compliant, regulated platform in and from Dubai under VARA’s supervision.
The platform also said it does not expect the suspension of its MVP operational license to impact its ability to continue providing broker-dealer services to existing retail users.
However, it said it will not onboard any new clients until it has fully complied with VARA’s requirements.
BitOasis was founded in Dubai in 2016 and enables users across the GCC and MENA region to buy and sell over 60 tokens with fiat currencies such as AED, SAR, TRY and USD.
It was the first crypto exchange platform to obtain an operational license in Dubai and aimed to become the first one to receive an FMP license in the Middle East region.
The suspension of BitOasis’ license is one of the latest developments in the global regulatory landscape for crypto companies.
It demonstrates how VARA is taking proactive measures to ensure market integrity and investor protection in the virtual assets sector in Dubai.
