The Virtual Assets Regulatory Authority (VARA), Dubai’s digital assets regulator, has declared the license of cryptocurrency exchange Bitoasis as “non-operational.” This decision comes after Bitoasis failed to fulfill the mandated conditions within the specified timelines.
VARA, responsible for regulating digital assets in Dubai, made the announcement on July 9, highlighting that Bitoasis’ license for institutional and qualified retail investors will remain in a non-operational state until the exchange adequately addresses the concerns raised by the regulator.
In an official market notification, VARA explained the reasons behind its decision, which occurred only a few months after granting the license to Bitoasis. The regulator revealed that Bitoasis had received a conditional MVP License on April 12, 2023, with the intention of permitting market operations once specific conditions were met within a 30-60 day timeframe. However, due to Bitoasis’ failure to meet these mandated conditions within the specified period, VARA initiated necessary regulatory actions against the exchange.
In response to the situation, Bitoasis sought to reassure its users, stating that VARA’s decision will not affect its ability to provide broker-dealer services to existing retail users. The exchange clarified that it had not commenced operations as VARA has not yet granted it the necessary license.
Frequently Asked Questions (FAQs) about crypto exchange license
What led to the Dubai regulator deeming Bitoasis’ license as “non-operational”?
Bitoasis’ license was deemed “non-operational” by the Dubai digital assets regulator, VARA, due to the exchange’s failure to fulfill the mandated conditions within the prescribed timelines. As a result, VARA initiated regulatory actions against Bitoasis.
What is the Virtual Assets Regulatory Authority (VARA)?
VARA is the regulatory authority responsible for overseeing digital assets in Dubai. It ensures compliance with regulatory requirements and sets standards for cryptocurrency exchanges and related activities.
How long will Bitoasis’ license remain in a non-operational state?
Bitoasis’ license will remain non-operational until the exchange fully addresses the concerns raised by VARA and meets the mandated conditions specified by the regulator.
What actions will VARA take to assess Bitoasis’ compliance?
VARA will continue to monitor Bitoasis’ situation for regulatory compliance and evaluate the exchange’s fulfillment of the remedial actions imposed on it. The regulator will ensure that Bitoasis meets the necessary requirements before granting it permission to resume operations.
Will Bitoasis’ ability to provide services to existing retail users be affected?
No, Bitoasis clarified that VARA’s decision to deem its license non-operational will not impact its ability to provide broker-dealer services to existing retail users. However, the exchange cannot commence operations until it receives the necessary license from VARA.