Dubai’s New Crypto Regulator Brings UAE Firm “BitOasis”. BitOasis, a Middle East-focused crypto exchange based in the United Arab Emirates, has received provisional approval from Dubai’s new crypto regulator, as the UAE pushes to become a centre for the virtual asset sector.
What is bitOasis?
What is Bitoasis? Bitoasis is a cryptocurrency exchange based in the United Arab Emirates. The platform has a direct focus on clients based in the Middle East. Although Bitoasis allows cryptocurrency deposits and withdrawals on a global basis, they only allow users from six specific countries to deposit funds with fiat money.
Dubai, one of the UAE’s seven emirates and the region’s trade hub, this month issued its first law governing digital assets and formed the Virtual Asset Regulatory Authority (VARA) to oversee the sector.
Dubai this month granted virtual asset licences to Binance, the world’s largest cryptocurrency exchange, and FTX Europe, which will set up a regional headquarters in the city. Global exchanges Bybit and Crypto.com this week said they are also establishing operations there.
BitOasis, which was founded in Dubai in 2015 and serves English and Arabic speaking customers in the Gulf and Middle East, will continue operations in Dubai while it applies for a full VARA license, the company said.
Prior to coming under VARA, BitOasis had been registered with the central bank and was reporting on anti-money laundering issues to the bank’s financial intelligence unit, the company said.
The UAE has been pushing to develop the virtual asset sector and regulation to attract new forms of business as regional economic competition heats up.
Internationally, regulators worry about how a meltdown in cryptoassets – markets which are highly volatile and still opaque – would feed into the wider financial sector and there is a global push to regulate the sector.
The Emirate of Dubai has adopted its first crypto law and formed a regulatory body for virtual assets. This, as the emirate tries to position itself as a world leader in terms of emerging technologies like cryptocurrency and blockchain. The emirate within the United Arab Emirates (UAE) has set up the Dubai Virtual Assets Regulatory Authority, which will be working with all related entities to promote security and transparency for crypto investors.
Role of regulatory body VARA
The Dubai Virtual Assets Regulatory Authority or VARA will be tasked with regulating the sale of virtual assets and virtual tokens while also being responsible for regulation and authorising virtual asset service providers.
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In addition to these responsibilities, the VARA will also be ensuring that the data of investors remains secure and safe in the hands of virtual asset service providers. The organization will also be linked to the Dubai World Trade Centre Authority (DWTCA).
The law is expected to go into effect across the emirate with the exception of the Dubai International Financial Centre (DIFC), which is a special economic zone under the ambit of the Dubai Financial Services Authority (DFSA).