Dubai Regulator VARA Takes Action Against BitOasis

Dubai's reputation as a crypto-friendly destination hasn't prevented local regulators from cracking down on non-compliant companies. The Emirate's Virtual Assets Regulatory Authority (VARA) recently announced that it has initiated enforcement action against BitOasis, one of the largest crypto platforms catering to the Middle East market.

The market alert issued by VARA states that BitOasis is being reviewed for failing to meet the mandated conditions required for VARA-regulated market activity within the specified 30-60 day timeframes. Earlier this year, BitOasis was granted Dubai's "minimum viable product operational license," but the regulator may now rescind that license.

In an effort to ensure compliance, the Dubai regulator asserts its authority to supervise and monitor BitOasis' adherence to regulations. Potential enforcement actions include holding the exchange's license status as non-operational. The license currently enables BitOasis to provide broker-dealer services for crypto assets to qualified retail and institutional investors from its Dubai headquarters.

BitOasis, operating in 14 countries across the Middle East and North Africa (MENA) region, boasts a trading volume of over $3 billion, as per its website. However, last year, the exchange faced challenges amid recession and market turmoil, leading to a 5% reduction in its workforce.

In April, VARA reprimanded Kyle Davies and Su Zhu, co-founders of the bankrupt crypto hedge fund Three Arrows Capital. In May, the regulator also reprimanded OPNX founders Mark Lamb and Sudhu Arumugam, along with CEO Leslie Lamb, for engaging in unregulated activities.