Dubai Crypto regulator VARA grants provisional approval to BitOasis

Dubai has already granted virtual asset licenses to Binance, the world's largest cryptocurrency exchange, and FTX Europe. Bybit and are also in advance stages to initiate their operations in the region.

The new crypto regulator in Dubai formed under Dubai Virtual Asset Regulatory Authority (VARA) has granted provisional approval to BitOasis, the UAE based crypto platform to provide exchange and investment services to investors interested in trade of Blockchain based digital currencies or cryptocurrencies, NFTs and other digital assets.

Image Source: Bitoasis

Dubai issued its first law governing digital assets and formed the Virtual Asset Regulatory Authority (VARA) to oversee the booming zone of investment in cryptocurrency.

In this regard, Dubai has already granted virtual asset licenses to Binance, the world’s largest cryptocurrency exchange, and FTX Europe. Apart from these big cryptocurrency houses, Global exchanges like Bybit and are also in advance stages to initiate their operations in the region.

BitOasis is one of the first and largest cryptocurrency exchanges in the MENA (Middle East, North Africa) region. With headquarters in UAE, it was established in 2015. BitOasis claims to offers a secure ecosystem for cryptocurrency trading. It says that its user friendly interface supports both the amateur and experienced traders in a like manner.

BitOasis will now continue operations in Dubai while it applies for a full VARA license. Prior to the formation of VARA, the activities in BitOasis were monitored by the Central Bank of Dubai.

Another reason for which Dubai is fascinating the big names of crypto trading sector is the cost of Bitcoin mining. Mining in Bitcoin is based on Proof of Work mechanism, which is very high on electricity consumption. The amount of power consumed annually by Bitcoin is enough to fulfill the needs of a nation like Sweden.

Though the Crypto miners are reverting back to fossil fuels and renewable sources of energy to meet the power demand of the industry, the huge oil reserves in UAE region can make up for a cheap provision of electricity. The whole idea may not sync well with the environmentalists who are in favor of adopting new way of validation, popularly known as Proof of Stake.

In order to keep pace with the growing economies of the world, The UAE is promoting the virtual asset sector and therefore developing regulations to attract new forms of investment.

Dubai, the trading hub of UAE is aiming to become the world’s biggest Crypto center. To regulate and organize this new and fast-growing sector, Dubai issued its first law governing virtual assets and formed the Virtual Asset Regulatory Authority (VARA) this month.

UAE is looking forward to the potential of the cryptocurrency with both these giants entering the UAE alongwith Binance and FTX Europe to begin their operations related to virtual assets. Binance is the world’s largest cryptocurrency exchange in the world. FTX Europe again is a subsidiary of another big crypto exchange FTX.

The UAE is keen to tap the new forms of business by giving a boost to the development of the digital assets economy. Although on global front, the governments are still in a dilemma of regulating the class of digital currency and assets.

High speculation involved in the cryptocurrency market puts investors’ money at high risk and is a reason strong enough for the governments to pull back their hands. Moreover, the way it can promote the activities of the dark businesses is really alarming for the governments.

Another drawback to this sector is the lack of sufficient knowledge among the investors. Most of the investments in the crypto zone are driven by sentiments and a step towards quick money gain.

Some of the major economies of the world including USA, China, India are extremely cagey about allowing cryptocurrencies. These countries such as are working on measures to discourage people from investing in cryptocurrencies. India recently imposed 30% income tax on income generated from crypto or digital assets. India also banned adjustment of gains made from one crypto asset with loss in another.

But UAE, a Middle Eastern nation is noticeably welcoming the VASPs (Virtual Assets Service Providers) with open hands. These VASPs are providing exchange platforms for crypto investors.