Dubai, a city known for its luxury and innovative spirit, is once again making headlines as it delves headfirst into the crypto market. By developing progressive regulatory frameworks and granting licenses to crypto exchanges, Dubai is embracing the digital revolution and sending a clear message to the global financial community. In a historic move, BitOasis, a leading cryptocurrency exchange in the Middle East, has secured the first-ever broker-dealer Minimum Viable Product (MVP) operational license issued by Dubai’s crypto regulator.
BitOasis Achieves A Major Milestone In Dubai
BitOasis, a pioneering crypto exchange with a focus on the Middle East and based in the United Arab Emirates, has triumphantly secured the very first broker-dealer Minimum Viable Product (MVP) operational license from Dubai’s dedicated crypto regulator, as announced on Monday.
Established in March 2022, Dubai’s Virtual Asset Regulatory Authority (VARA) was created to oversee and nurture the burgeoning virtual asset sector within the emirate. This bold move aligns with the United Arab Emirates’ ambitious vision of transforming itself into a global epicenter for the promising cryptocurrency industry.
In a dynamic, multi-stage licensing process, VARA has granted BitOasis the first-ever completion of the crucial Minimum Viable Product (MVP) stage. This achievement comes after the crypto exchange received provisional approval to initiate the licensing journey back in March 2022.
While no firm has yet claimed success in attaining the coveted Full Market Product (FMP) stage, as confirmed by VARA’s website, BitOasis’ accomplishment is still a significant milestone.
With this robust development, BitOasis is now authorized to offer broker-dealer services to a diverse clientele of qualified retail and institutional investors. Operating from its Dubai headquarters, the company will conduct its services under the watchful eye of VARA’s regulatory regime, as highlighted in its recent statement.
Dubai Aims To Become A Crypto Hub
The Dubai crypto community is filled with excitement as the jurisdiction recently introduced its comprehensive regulatory framework for digital asset issuers and service providers. This long-awaited development provides a clear and solid licensing structure for the local crypto industry.
The new framework comes on the heels of a tumultuous period in 2022 when crypto markets experienced a downturn. This turbulence spurred regulators worldwide to intensify their efforts in establishing or enforcing protective measures, leaving companies and investors questioning the future of the industry.
Under Dubai’s innovative guidelines, all entities intending to provide one or more crypto-related services within the jurisdiction must obtain the necessary authorizations and licenses. Complementing this framework are four mandatory rulebooks tailored for service providers and seven activity-based rulebooks, which outline specific requirements based on the type of service offered.
VARA CEO Henson Orser said, “The VARA ecosystem aims to strike a balance between value creation, risk mitigation and enhanced investment opportunities with consumer protection at its core.”
Dubai’s VARA offers a diverse range of seven regulated virtual asset activity licenses. These encompass advisory, broker-dealer services, custody, exchange, lending and borrowing, transfer and settlement, as well as management and investment services. Entities in Dubai providing any or all of these services must register with VARA to ensure compliance.
Cryptocurrency businesses in Dubai needed to meet a critical deadline: April 30th. By this date, they must complete and submit their ‘Initial Disclosure Questionnaires’ to the regulator, VARA. This pivotal step marks the beginning of a comprehensive regulatory regime for all activities related to virtual assets in Dubai.
The ultimate goal is to protect the rights of investors trading in crypto assets by demanding increased transparency from businesses operating within the sector. This added layer of protection aims to mitigate the risk of devastating FTX-style incidents that have previously plagued the crypto trading landscape.
With progressive initiatives like VARA and the recent licensing of BitOasis, the city is sending a clear message: Dubai is open for business and ready to embrace the future of money.
