Dubai’s crypto regulator is taking strict measures against BitOasis, a major cryptocurrency exchange serving customers in the Middle East.
This move shows the increasing scrutiny against crypto businesses in the United Arab Emirates (UAE) and raises concerns about Binance, another troubled exchange, getting a license.
Founded in Dubai in 2016, BitOasis became the first crypto exchange to receive Dubai’s “minimum viable product operational license” in May. The license allowed BitOasis to offer crypto services to both individual and institutional investors from its Dubai headquarters under the regulatory oversight of Dubai’s Virtual Assets Regulatory Authority (VARA).
VARA recently issued a market alert expressing concerns about BitOasis and initiated a review of its operations. Although the specific reasons for non-compliance were not disclosed, BitOasis has a limited timeframe of 30-60 days to address the regulator’s requirements and fulfill the mandated conditions.
Failure to comply may result in the revocation of BitOasis’ license. The company is actively working with the regulator to ensure compliance and maintain its license.
Dubai has been actively working to attract cryptocurrency businesses, and Binance has shown interest in the region as a potential operational hub.
Binance’s CEO, Changpeng Zhao, reportedly resides in Dubai, and the company has applied for registration there. However, VARA has requested additional information from Binance regarding its ownership structure, governance, and auditing procedures.
With BitOasis facing regulatory scrutiny, the prospects of Binance getting a license in Dubai are becoming increasingly uncertain, especially considering the regulatory challenges the company faces in the US, European Union (EU), and Australia.
