Digital currency exchange BitOasis becomes the first broker-dealer firm to secure a minimum viable product (MVP) operational license from Dubai’s Virtual Asset Regulatory Authority (VARA).
The new license obtained from VARA confers on BitOasis the right to offer brokerage services to institutional and retail investors in line with regulations. BitOasis’ new milestone comes on the heels of a lengthy collaboration with Dubai’s regulators leading up to a provisional approval in March 2022.
Under the new MVP license, qualified investors can interact with the platform’s offerings, including buy, sell, and wallet services. VARA’s provisions state that qualified investors are incorporated legal entities or individuals with a cash holding of AED 500,000 (US$136,000).
Customers who do not come under the ambit of qualified investors can still access the platform’s offerings based on the 2022 provisional license. Under the provisional license, BitOasis is not restricted from offering services to retail clients, but there are plans to cater to both offerings under one platform.
“We are extremely proud to receive VARA’s MVP Operational License,” said Ola Doudin, CEO of BitOasis. “Becoming the first virtual asset trading platform in the MVP program to attain an operational position is an important milestone for us and the Emirate of Dubai.”
The platform noted in a Q and A session that its customers around the Middle East and North Africa region can continue enjoying its services without any hassles from the new license. BitOasis remarked that it would not be resting on its laurels as it has put things in motion to gain operational permits in Bahrain.
Since its launch in 2016, BitOasis has provided brokerage services to over 700,000 customers with transaction volumes exceeding $5 billion in under eight years. The firm became the first digital currency entity to obtain registration with the United Arab Emirates’ Financial Intelligence Unit.
Dubai invites digital currency firms with robust regulation
Digital currency firms have expressed an interest in setting up shops in Dubai following the emirate’s intention to create a conducive business environment for companies. Dubai’s government’s strongest show of intent was the launch of a robust legal framework to regulate the activities of industry players.
The law created a new regulator for the sector, opening the floodgates for several firms to throw their hat in the ring for licensing. In the last 12 months, digital currency exchanges Binance and Crypto.com gained provisional licenses to operate in the region, with several firms waiting for VARA’s approval.
Watch: Middle East governments trying to find good use cases for blockchain: Ahmed Yousif
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.