The Dubai-based cryptocurrency regulator has suspended BitOasis’ cryptocurrency exchange license for failing to meet mandatory requirements within the timeframes set by the authority.
On July 10, the Virtual Asset Regulatory Authority (VARA) issued two alerts saying it has taken enforcement action against BitOasis and is reviewing the Dubai-based company.
VARA said BitOasis’ conditional license, granted on April 12, allowed it to operate provided the company met “key conditions over a 30-60 day time frame” that the regulator said were not met.
VARA did not detail what conditions BitOasis failed to meet, but until it can meet the terms, its “licensing for institutional and qualified retail investors” remains “non-functional,” according to the regulator.
BitOasis has received the city’s first “Minimum Viable Product Operating Licenses” from VARA allowing it to offer brokerage and dealer services to qualified institutional and retail investors in Dubai according to a May blog.
Licensing is the last multi-step process before a Full Market Product (FMP) license is issued. Currently, VARA has not issued an FMP license to any company.
VARA has made it clear that BitOasis will have to meet the conditions set out in its existing license in order to apply for an FMP license.
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VARA’s latest action follows its reprimand in April of Su Zhu and Kyle Davies – the co-founders of collapsed crypto hedge fund Three Arrows Capital.
The pair landed on VARA’s radar for operating and promoting the new OPNX cryptocurrency exchange in Dubai without the required license.
Regarding BitOasis, VARA said it will “continue to monitor the situation to address regulatory compliance.”
Cointelegraph reached out to BitOasis and VARA for comment but did not immediately receive a response.
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