Dubai-based cryptocurrency exchange BitOasis recently announced that it has secured a round of funding from a group of investors, including Indian digital-asset platform CoinDCX. The specific terms of the deal and the valuation of the exchange were not disclosed.
BitOasis, founded in 2016, offers its services in several countries in the Middle East, including the United Arab Emirates, Saudi Arabia, Bahrain, and Kuwait. The Middle East and North Africa region has witnessed significant growth in the cryptocurrency market, making it one of the fastest-growing markets between mid-2021 and mid-2022, according to Chainalysis research.
The recent investment in BitOasis follows its successful fundraising efforts in 2021, during which it raised $30 million. The company has also made notable strides in the industry, receiving one of Dubai’s “minimum viable product operational licenses” earlier this year. This license allows BitOasis to offer broker-dealer services for digital assets to qualified investors.
However, BitOasis faced a setback in July when it was reprimanded by Dubai authorities for not meeting the required conditions set by the local regulator. The market alert notified investors and customers of BitOasis about ongoing supervisory controls and enforcement actions against the exchange. This incident highlighted the increased regulatory oversight of crypto companies in Dubai.
Related Post
CoinDCX, on the other hand, achieved the status of India’s first cryptocurrency unicorn after raising approximately $90 million from investors led by B Capital Group. This funding round valued CoinDCX at $1.1 billion, solidifying its position in the Indian cryptocurrency market.
Dubai has become one of the major crypto hubs in the world, attracting prominent players in the industry. Binance, the world’s largest crypto exchange, opened three offices in Dubai last year after obtaining the necessary licenses to operate. However, Dubai has also been proactive in cracking down on crypto players operating without the requisite licensing, despite its aspirations to establish itself as a global hub for the industry.
In April, Dubai authorities reprimanded the OPNX crypto exchange for operating as an unlicensed and unregulated entity. The Virtual Assets Regulatory Authority (VARA) issued a cease-and-desist order against the exchange. These actions reflect the country’s commitment to enforcing regulations and ensuring compliance within the crypto industry.
Nevertheless, Dubai’s regulatory framework has also provided opportunities for licensed crypto companies. Several prominent firms, including Bybit, Crypto.com, Binance, and OKX, have obtained MVP licenses and are permitted to operate in the region. This regulatory clarity has attracted industry leaders to establish a presence in Dubai.
The recent funding secured by BitOasis will likely support its expansion plans and enhance its services in the Middle East market. Additionally, the investment from CoinDCX and other investors demonstrates their confidence in the growth potential of BitOasis and the broader cryptocurrency market in the region.
As the adoption of cryptocurrencies continues to accelerate globally, the Middle East and North Africa region remains a promising market. With a strong presence in countries like the United Arab Emirates, BitOasis is well-positioned to capitalize on this growth and solidify its position as a leading cryptocurrency exchange in the Middle East.
Despite the regulatory challenges faced by crypto companies in Dubai, the government’s efforts to establish a robust regulatory framework indicate its commitment to supporting the growth of the industry while ensuring investor protection.
Overall, the recent investment in BitOasis highlights the growing interest and confidence in the Middle East’s cryptocurrency market. As the region continues to attract investors and organizations, initiatives such as regulatory oversight and licensing will play a crucial role in establishing Dubai as a global crypto hub.
