Virtual Assets Authority of Dubai Cancels BitOasis' Conditional License

Overview Of The Situation:

BitOasis received the conditional license in April 2023, which allowed it to operate subject to fulfilling key conditions within 30–60 days. However, VARA found that the exchange had not met these conditions, prompting the enforcement action.
VARA did not detail what conditions BitOasis failed to meet, but until it can fulfill the conditions, the firm's “Licence for Institutional and Qualified Retail Investors remains 'non-operational,'” according to the regulator.
BitOasis said it is working closely with VARA to fulfill the conditions and that the license specifically covers institutional and qualified investors, to whom it has not yet provided services.
The suspension of BitOasis's license is a setback for the Dubai government's efforts to position itself as a hub for cryptocurrency trading.
The suspension of BitOasis's license comes at a time when the cryptocurrency market is facing a broader downturn.
The price of Bitcoin, the world's most popular cryptocurrency, has fallen by more than 70% from its all-time high in November 2021.
The decline in the cryptocurrency market has led to a number of exchanges suspending withdrawals and trading.

BitOasis is a defunct Dubai-based cryptocurrency exchange. However, the business has published a notice stating that local authorities have suspended its trading license.

Authorities insist that they are adjusting things since the cryptocurrency firm isn't playing by the rules. The organization in charge of regulating virtual assets, VARA, has also revoked this license.

The government had already issued two warnings about regulatory oversight before finally revoking the license. In April, BitOasis received a conditional operating license from VARA. The regulating firm was given a conditional license and told to follow all rules and regulations for a specific period of time.

However, the swap didn't integrate in the required 30–60 days. The authorities at VARA have therefore begun investigating BitOasis.

BitOasis Will Be Subject to VARA's Enforcement Procedures

VARA can take corrective action against BitOasis under the guise of the law. The agency may also take enforcement action against the bitcoin exchange for alleged violations of regulations. The exchange license is currently shown as inactive on the platform.

The authorities have stated repeatedly that they will keep an eye on the company to ensure that it follows the rules.

However, the relevant authorities have sent out a notice informing investors, clients, and other parties involved with the crypto exchange about the status of its license revocation. The company has been active in Dubai since 2016, which is worth noting.

In addition to listing over 60 different cryptos, the company has been active in the region for years. When it launched in 2021, the cryptocurrency exchange in Dubai was the first Virtual Asset platform in the city to accept deposits from customers' bank accounts.

The company was able to provide bank purchases without transaction fees. The company also holds the distinction of being the first cryptocurrency exchange to be awarded an MVP license.

BitOasis, on the other hand, was serving as a cryptocurrency broker for both large financial institutions and individual customers. The company has also been granted provincial approval as of 2022. The UAE Financial Intelligence Unit, also known as the Go-AML platform, has certified the company as legitimate. However, VARA representatives have insisted that the company is cooperating with local authorities.

However, since Dubai's authorities do not currently recognize the business, its existence in the city might soon come to an end. Cryptocurrency exchanges and other Web 3.0 businesses, however, have found the regulatory climate in Dubai to be particularly welcoming.