Last Updated on: 8th July 2023, 10:36 pm
Dubai Cryptocurrency Regulator Cracks Down On BitOasis, Raising Concerns About Binance
Dubai’s cryptocurrency regulator is cracking down on BitOasis, a major cryptocurrency exchange serving customers in the Middle East.
The move shows that cryptocurrency companies in the United Arab Emirates (UAE) are under increasing scrutiny and raises concerns about the licensing of Binance, another troubled exchange.
Founded in Dubai in 2016, BitOasis was the first cryptocurrency exchange to receive Dubai’s Minimum Viable Product Operating License in May. The license enabled BitOasis to offer retail and institutional crypto services from its Dubai headquarters under the oversight of the Dubai Virtual Assets Regulatory Authority (VARA).
VARA recently issued a market alert raising concerns about BitOasis and launched a review of its operations. Although the specific reasons for the breach have not been disclosed, BitOasis has a limited period of 30 to 60 days to comply with the regulator’s requests and comply with the imposed conditions.
Failure to comply may result in revocation of the BitOasis license. The company is actively working with the regulator to ensure compliance and maintain its license.
Dubai is actively working to attract cryptocurrency businesses and Binance has shown interest in the region as a potential hub.
Changpeng Zhao, CEO of Binance, is said to be based in Dubai, and the company is said to have applied for registration there. However, VARA requested additional information from Binance regarding its ownership structure, governance, and audit procedures.
With BitOasis subject to regulatory scrutiny, Binance’s prospects of obtaining a license in Dubai are becoming increasingly uncertain, particularly given the regulatory challenges the company is facing in the United States, European Union (EU), and Australia.
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