Dubai’s BitOasis Secures Funding in Cryptocurrency Exchange Boost

BitOasis, a cryptocurrency exchange headquartered in Dubai, has successfully secured funding in a recent investment round, with participation from various investors, including Indian digital asset platform CoinDCX. The exact financial terms of this deal and BitOasis’ current valuation remain undisclosed, as reported by Bloomberg on a Friday. Notably, existing investors such as Wamda Capital and Jump Capital also participated in this funding round. BitOasis, established in 2016, provides its services in several Middle Eastern countries, including the United Arab Emirates, Saudi Arabia, Bahrain, and Kuwait.

The Middle East and North Africa (MENA) region have witnessed remarkable growth in the cryptocurrency market, emerging as the fastest-growing market between mid-2021 and mid-2022, according to research by Chainalysis. This latest investment marks another milestone for BitOasis, following its successful fundraising efforts in 2021, during which it raised $30 million.

BitOasis has made significant strides in the cryptocurrency industry, recently obtaining a “minimum viable product operational license” from Dubai authorities. This license enables BitOasis to provide broker-dealer services for digital assets to qualified investors. However, the company faced a setback in July when it was reprimanded by local authorities in Dubai for failing to meet the required regulatory conditions. During this time, a market alert was issued to inform investors and customers of BitOasis about ongoing supervisory controls and enforcement actions against the exchange.

On the other hand, CoinDCX, an Indian cryptocurrency platform, achieved unicorn status in India after raising approximately $90 million in a recent funding round led by B Capital Group, co-founded by Eduardo Saverin of Meta Platforms Inc. This funding round valued CoinDCX at $1.1 billion.

Dubai has emerged as a major global hub for cryptocurrency companies, attracting key players in the industry. For instance, Binance, the world’s largest cryptocurrency exchange, established three offices in Dubai in the preceding year after securing the necessary licenses to operate. However, Dubai has also been enforcing regulations on crypto entities that operate without proper licensing, despite its ambition to establish itself as a global industry hub. In April, Dubai authorities issued a cease-and-desist order against the OPNX crypto exchange, accusing it of operating without the required licenses and regulatory oversight. Meanwhile, the country’s crypto regulator, the Virtual Assets Regulatory Authority (VARA), has issued MVP licenses to several companies, including Bybit, Crypto.com, Binance, and OKX, permitting them to operate in the region.