Here’s why VARA has chastised crypto exchange BitOasis

The crypto exchange platform said it will not accept any new clients until it fully complies with VARA requirements

Dubai’s Virtual Asset Regulatory Authority (VARA) has suspended BitOasis’ minimum viable product operational licence (MVP) after the crypto exchange platform failed to meet the mandated conditions set forth by the regulator.

“BitOasis is under review for not meeting mandated conditions, required to be satisfied within 30-to-60-day timeframes prior to being permitted to undertake any VARA regulated market activity,” the Dubai crypto regulator said in a market alert.

VARA said it is exercising its authority to supervise and monitor compliance, assure fulfilment of prescribed conditions and impose remedial measures.

The regulator cautioned that it may take necessary enforcement measures, including but not limited to revoking BitOasis’ licence.

Meanwhile, BitOasis said it is working closely with VARA on fulfilling the remaining conditions and is committed to providing a safe and secure service to its users.

The crypto exchange platform said it will not onboard any “new clients until we have fully complied with VARA requirements”. The company does not expect the suspension of its MVP operational license to impact the company’s ability to continue providing broker-dealer services to existing retail users.

“Our team will continue to work closely with VARA and remediate all outstanding post-licensing conditions of our Operational MVP License as committed to the regulator, as well as working towards Full Market Product (FMP) licensing,” BitOasis said in a statement.

The exchange platform said it remains committed to securing a broker-dealer license and operating a compliant, regulated platform in and from Dubai under VARA’s supervision.

BitOasis’ MVP operational milestone

Meanwhile, BitOasis received the first of Dubai’s minimum viable product operational licenses earlier in May. The MVP operational licence would allow the UAE-based crypto exchange, which received provisional approval to start the licencing process in March 2022, to offer VA broker-dealer services to qualified retail and institutional investors.

BitOasis, said at the time, that it plans to leverage the MVP operational licence to launch strategic partnerships in Dubai and across the UAE, to provide qualified investors the opportunity to buy, sell and hold virtual assets on the platform.

The exchange platform also planned to launch new virtual asset products with a continued focus on driving accessibility, consumer protection and utility across the virtual asset ecosystem.

The reprimand is one of the latest in a global flurry of enforcement activity against crypto companies. It will likely derail BitOasis’ plans to become the first crypto exchange platform to receive a full market product licence to operate in the Middle East region.

Founded in Dubai in 2016, BitOasis enables users across the GCC and MENA region to buy and sell over 60 tokens with fiat currencies such as AED, SAR, TRY and USD.

The company became the only virtual assets platform to offer customers the ability to deposit funds to bank accounts in the UAE on a fee-free and near real-time basis in 2021. It also became the first crypto platform in the UAE to be registered with the country’s Financial Intelligence Unit (Go-AML platform) in 2021.