{"id":56799,"date":"2023-08-16T10:54:59","date_gmt":"2023-08-16T14:54:59","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=56799"},"modified":"2023-08-17T07:23:18","modified_gmt":"2023-08-17T11:23:18","slug":"opnx-founders-fined-2-8m-by-dubai-regulator","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/opnx-founders-fined-2-8m-by-dubai-regulator\/","title":{"rendered":"OPNX, Founders Fined $2.8M by Dubai Regulator"},"content":{"rendered":"\n

OPNX, a crypto exchange co-founded by former hedge fund managers Kyle Davies and Su Zhu, has been fined nearly $2.8 million by the Dubai regulator VARA<\/a> for violating market rules.<\/p>\n\n\n\n

\"OPNX,<\/figure>\n\n\n\n

The exchange has not paid its fine yet, while the founders and other executives have settled their penalties.<\/p>\n\n\n\n

VARA, the Virtual Asset Regulatory Authority of Dubai, issued a notice on Wednesday,\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> Aug. 16, 2023, detailing the fines imposed on OPNX<\/a> and its founders for multiple infringements of market regulations. <\/p>\n\n\n\n

The notice stated that the regulator fined OPNX a hefty amount of 10 million dirhams (approximately $2.7 million)<\/strong> for failing to adhere to market rules. Notably, this fine remains unpaid at the time of the notice\u2019s publication.<\/p>\n\n\n\n

In addition, Davies and Zhu, who also played roles in the failed crypto hedge fund Three Arrows Capital (3AC), faced separate penalties<\/use><\/svg><\/span><\/a> of $54,000 each. <\/p>\n\n\n\n

These fines were related to their failure to meet the standards set by the regulator for marketing, advertising, and promotional activities. <\/p>\n\n\n\n

OPNX co-founder Mark Lamb and CEO Leslie Lamb also received the same fines for the same reasons.<\/p>\n\n\n\n

However, these penalties were promptly paid by the parties involved, according to the notice.<\/p>\n\n\n\n

Further Actions by VARA<\/h3>\n\n\n\n

Despite the paid fines, VARA has emphasized that it will take additional actions to address the unpaid penalty incurred by OPNX. <\/p>\n\n\n\n

These actions encompass further financial penalties and measures to recover the payment and rectify the behavior that led to the violations.<\/p>\n\n\n\n

The regulatory action against OPNX and its founders comes in the context of Dubai\u2019s increased scrutiny of the cryptocurrency sector. <\/p>\n\n\n\n

Dubai has introduced a new regulatory framework requiring crypto-related firms catering to retail investors to obtain licenses from VARA. <\/p>\n\n\n\n

The framework aims to protect investors from fraud and market manipulation, as well as to ensure compliance with anti-money laundering and counter-terrorism financing rules.<\/p>\n\n\n\n

OPNX, co-founded by Davies, Zhu, and Mark Lamb in early 2023, experienced rapid growth in trading volume, reaching $30 million<\/strong> by late June, despite its modest beginnings. <\/p>\n\n\n\n

The exchange offers spot and futures trading for various cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Binance Coin (BNB).<\/strong><\/p>\n\n\n\n

The exchange also claims to have a strong security system, a user-friendly interface, and low fees. <\/p>\n\n\n\n

However, its regulatory troubles have cast doubts on its reputation and future prospects.<\/p>\n","protected":false},"excerpt":{"rendered":"

OPNX, a crypto exchange co-founded by former hedge fund managers Kyle Davies and Su Zhu, has been fined nearly $2.8 million by the Dubai regulator VARA for violating market rules. The exchange has not paid its fine yet, while the founders and other executives have settled their penalties. VARA, the Virtual Asset Regulatory Authority of […]<\/p>\n","protected":false},"author":44,"featured_media":56847,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[1709,960,15856,14979,9567],"class_list":["post-56799","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news","tag-3ac","tag-dubai","tag-mark-lamb","tag-opnx","tag-vara"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/08\/OPNX.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/56799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=56799"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/56799\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/56847"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=56799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=56799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=56799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}