Dubai’s crypto regulator is intensifying its actions against BitOasis, a prominent cryptocurrency exchange catering to customers in the Middle East. This move highlights the growing scrutiny faced by crypto businesses in the United Arab Emirates (UAE) and raises doubts about whether troubled exchange Binance will be granted a license.
BitOasis Faces Review and Compliance Deadline
Established in Dubai in 2016, BitOasis secured Dubai’s “minimum viable product operational license” in May, making it the first crypto exchange to receive such authorization. This license permitted BitOasis to offer crypto services to individual and institutional investors from its Dubai headquarters under the regulatory oversight of Dubai’s Virtual Assets Regulatory Authority (VARA).
However, VARA recently issued a market alert expressing concerns about BitOasis and initiated a thorough review of its operations. While 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.
Consequences of Non-Compliance for BitOasis
Failure to comply with VARA’s demands could lead to the revocation of BitOasis’ license. In response, the company is actively collaborating with the regulator to ensure compliance and preserve its license.
Uncertain Prospects for Binance in Dubai
Dubai has actively pursued the establishment of cryptocurrency businesses, prompting Binance, another prominent exchange, to express interest in the region as a potential operational hub. Binance’s CEO, Changpeng Zhao, is reportedly based in Dubai, and the company has applied for registration there. However, VARA has requested further information from Binance regarding its ownership structure, governance, and auditing procedures.
Given the regulatory challenges Binance already faces in the United States, European Union (EU), and Australia, the prospects of the exchange obtaining a license in Dubai have become increasingly uncertain, especially with BitOasis currently undergoing regulatory scrutiny.
