Dubai’s VARA grants WadzPay ‘initial approval’ of trading license

Dubai Regulator Suspends BitOasis’ Crypto LicenseDubai’s pioneering cryptocurrency exchange, BitOasis, has had its operating license suspended by the city’s cryptocurrency regulator for failing to meet key conditions within the required timeframes. The Virtual Assets Regulatory Authority (VARA) took enforcement action against BitOasis and initiated a review of the Dubai-based firm.BitOasis was granted a conditional license on April 12, which allowed it to operate on the condition that it met specific requirements within 30 to 60 days. However, the exchange has failed to fulfill these conditions, leading to the suspension of its license. VARA did not disclose the exact nature of the unmet conditions, but it stated that until they are satisfied, BitOasis’ “License for Institutional and Qualified Retail Investors” will remain non-operational.Photo by iridial on UnsplashFirst MVP broker-dealer license holderBitOasis had received the first “minimum viable product operational license” from VARA, enabling it to offer broker-dealer services to qualified institutional and retail investors in Dubai. This license represents a crucial step towards obtaining a full market product (FMP) license, but as of now, no firm has been issued an FMP license by VARA.To become eligible for the FMP license, BitOasis must fulfill the conditions specified in its current license, as outlined by VARA. The regulatory authority has emphasized its commitment to monitoring the situation for compliance remediation.OPNX reprimandThis recent development follows VARA’s reprimand of Su Zhu and Kyle Davies, the co-founders of the now-defunct crypto hedge fund Three Arrows Capital, in April. The duo had operated and promoted their new OPNX crypto exchange in Dubai without the necessary license, catching VARA’s attention.BitOasis addressed the regulatory concerns in a blog post on Tuesday, affirming its collaboration with VARA to meet the remaining conditions for the Operational MVP License. The exchange clarified that the issue with its license does not impact other services provided, such as broker-dealer services for existing retail users. It also took to Twitter on Tuesday to clarify the situation. The company has suspended new user registrations until further notice, presumably as it works towards meeting VARAs licensing requirements.BitOasis stated: “You can continue to use BitOasis with the assurance that your assets are safe, secure, and held at their full value on our platform, and our team will continue to cooperate with the Virtual Asset Regulatory Authority and fulfill all post-operational license terms, as well as working towards a full market product license.”The firm referred to the “unique challenges” that are associated with licensing and suggested that it is determined to address them and to “be a leader in the virtual assets sector.”The suspension of BitOasis’ license highlights the stringent regulatory environment in Dubai’s cryptocurrency sector. VARA is demonstrating that it remains committed to enforcing compliance and ensuring that crypto exchanges meet the necessary requirements. BitOasis must rectify the issues and meet the conditions of its license to regain its operational status and proceed towards obtaining the coveted full market product license in the future.

Com2uS Holdings, the South Korean game publishing company behind Layer 1 blockchain XPLA, disclosed today that its revenue last year saw a 22.5% increase from 2022, reaching KRW 142.3 billion ($106.7 million). On the back of the revenue growth, the company's consolidated operating loss narrowed to KRW 14 billion, improving from 2022’s KRW 26.4 billion. Additionally, the net loss decreased to KRW 16.5 billion, down from the previous year’s KRW 70.6 billion. The operating loss for the fourth quarter stood at KRW 16.5 billion, showing an improvement from 2022 Q4's KRW 20.9 billion. During the same period, revenue reached KRW 21.4 billion, and the net loss was recorded at KRW 8 billion.Photo by Andrey Metelev on UnsplashGame sales and marketing expensesCom2uS Holdings attributed the increase in profits to game sales growth, which was encouraged by the release of more games. However, the company also noted a decrease in income from investments in associates and an increase in marketing expenses, which were driven by the launch of new games. Last year's operating expenses totaled KRW 156.4 billion. Labor costs, which constitute the largest portion of operating expenses, experienced a year-on-year decrease of 6.2%, amounting to KRW 46.7 billion. In contrast, there was an increase in spending across three areas: commissions rose by 43.8% to KRW 30.7 billion, loyalty expenses increased by 26.6% to KRW 25.1 billion and marketing saw a jump of 134.9% to KRW 21.1 billion. According to a report from local news agency Yonhap, Jung Chul-ho, CEO of Com2uS Holdings, emphasized at the earnings presentation today that the company is committed to growth in game publishing, blockchain projects and platform initiatives, all directed towards enhancing the company's value.Triple-A games on XPLA blockchainAs part of the company’s blockchain endeavors, the XPLA platform is set to focus on improving user convenience and incorporating major content, including a variety of triple-A games. Looking ahead, Com2uS Holdings anticipates that its idle role-playing game, Soul Strike, will contribute to the company's revenue for the first quarter. Since its debut last month, Soul Strike has been attracting attention not only in Korea but across Asia. The game publisher also outlined its global release plans for the MMORPG, Zenonia Chronobreak. Gamers in Taiwan can expect access to the game in the second quarter, while those in Japan and others will be able to play in the fourth quarter.

ZA Bank to Expand into Crypto Trading in Hong KongZA Bank, a leading virtual bank in Hong Kong, announced its plan to launch virtual asset trading services for retail investors. This initiative aligns with the Hong Kong government’s objective to foster a thriving virtual asset sector.The bank aims to enable investors to trade virtual assets in fiat currency via the ZA Bank App, a move that involves securing regulatory approvals and forming partnerships with licensed virtual asset exchanges.Photo by Jimmy Chan on PexelsComprehensive financial servicesIn a press release on Wednesday, ZA Bank CEO Ronald Lu appreciated the licensing guidelines set forth by the Hong Kong Securities and Futures Commission (SFC), expressing belief that virtual assets could evolve into a major asset class. The virtual bank’s new venture forms part of ZA Bank’s broader strategic expansion plan to provide a full range of financial services, which will eventually include US stock trading services.ZA Bank places a high emphasis on customer security and regulatory compliance. The bank commits to employing appropriate safeguards, including working with reliable third-party providers, implementing advanced security protocols, and strictly following anti-money laundering (AML) and know-your-customer (KYC) rules. Furthermore, ZA Bank will educate its users about the potential risks and rewards of virtual asset trading, assisting customers in making informed decisions.Similar move by an exchangeA similar move was seen earlier from crypto exchange BitMEX. The Seychelles-based trading platform announced in a blog post that it is gearing up to launch “BitMEX Hong Kong.” The company is presently working towards acquiring a virtual asset service provider (VASP) license from the SFC. The SFC notified that the VASP guidelines will become effective on June 1.Facilitation from regulatorsThese recent developments in the crypto industry follow the Hong Kong Monetary Authority’s (HKMA) efforts to facilitate dialogue between banks and crypto enterprises. According to last month’s column by HKMA Deputy Chief Executive Arthur Yuen, the HKMA and the SFC convened a joint meeting for the banking industry and VASPs to share opinions on bank account opening.