Dubai’s Crypto Giant BitOasis Faces Severe Reprimand

Key Points:

• Dubai reprimands BitOasis, a top Middle Eastern crypto platform, for not meeting regulatory conditions.
• BitOasis faces potential license revocation after failing to comply with mandated requirements.
• Global crackdown on crypto companies intensifies as Dubai takes action, emphasizing the importance of regulatory compliance.

BitOasis, one of the largest cryptocurrency platforms catering to customers in the Middle East, is facing reprimand from Dubai authorities for failing to meet the mandated conditions outlined by the local regulator.

The emirate’s Virtual Assets Regulatory Authority (VARA) issued a market alert on Monday, announcing its enforcement action against the crypto exchange.

According to the alert sent to Bloomberg News, BitOasis is under review for its failure to satisfy the required conditions within the specified 30-60 day timeframes before engaging in any VARA-regulated market activities.

Earlier this year, the crypto exchange had obtained Dubai’s initial “minimum viable product operational licenses,” but the regulator now hints at potential actions, including the revocation of BitOasis’ license to operate.

Upon receiving the license, BitOasis had planned to provide broker-dealer services for digital assets to qualified retail and institutional investors from its Dubai headquarters under VARA’s regulatory regime, as stated in the company’s previous statement. However, the exchange declined to comment on the VARA alert, while Dubai regulators have yet to respond to requests for comment.

This reprimand is the latest in a series of enforcement actions taken against cryptocurrency companies worldwide. In April, VARA issued a written reprimand to the co-founders of the now-bankrupt crypto hedge fund Three Arrows Capital, Kyle Davies, and Su Zhu, as well as to Mark Lamb, Sudhu Arumugam, and Leslie Lamb, in connection with the activities of digital-asset exchange OPNX.

As Coincu reported, Dubai’s finance regulator said that it intends to revise crypto restrictions that have been in operation in the city’s mall since November of last year. The guidelines may be published later this year. Several cryptocurrency firms prefer to execute a wide range of operations under one roof, which concerns Dubai authorities.

The global crackdown on crypto companies highlights the growing scrutiny faced by the industry and the regulatory efforts to ensure compliance and investor protection.

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