Cryptocurrency exchange Bitoasis’ license has been deemed “non-operational” by the Dubai digital assets regulator, the Virtual Assets Regulatory Authority. According to the regulator, VARA took the decisive step after Bitoasis failed to meet “mandated conditions within the prescribed timelines.”
VARA-Mandated ‘Remedial Actions’
The Dubai digital assets regulator, the Virtual Assets Regulatory Authority (VARA), announced on July 9 that it had deemed the crypto exchange Bitoasis’ license for both institutional and qualified retail investors “non-operational.” The regulator said the license will remain in this state until Bitoasis fully addresses the regulator’s concerns.
In its latest market notification, VARA explained why it took the decision just a few months after it issued a license to the crypto exchange.
“Bitoasis was issued a conditional MVP Licence [Licence] on 12.April.2023 that would permit market operations upon the entity’s fulfillment of key conditions over 30-60 day timeframes. As a result of Bitoasis not meeting these mandated conditions within the prescribed timelines, VARA has initiated warranted regulatory actions against the entity,” the regulator said.
The regulator also said it will continue to assess “the situation for regulatory compliance” as well as the exchange’s fulfillment of “remedial actions” imposed on it.
Meanwhile, in a statement that sought to allay user fears, Bitoasis said VARA’s decision will not have an impact on its ability to continue providing “broker-dealer services” to existing retail users. The exchange also clarified that it had not commenced providing services because VARA is yet to grant it a license allowing it to commence operations.
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