Key Takeaways:
CoinDCX’s acquisition of BitOasis highlights growing global attention on the MENA crypto market.The UAE is positioning itself as one of the major jurisdictions for crypto activities, gaining international interest.Strong regulation and strategic partnerships are driving trust and growth within the regional crypto ecosystem.
BitOasis’s Journey from MVP License to Full Operational License
The country’s first domestic crypto brokerage, BitOasis, reportedly achieved a feat by becoming fully licensed to operate as a Virtual Asset Service Provider via Dubai’s Virtual Assets Regulatory Authority. According to its website, VARA granted permission for onshoring BitOasis Technologies FZE in Dubai Silicon Oasis to conduct certain activities and types of products, including brokerage services.
This achievement is a result of relentless effort that has been put in by BitOasis for quite a while. In May 2023, BitOasis was granted an MVP license, enabling only small-scale operations. However, this very license was temporarily suspended. Throughout July 2023, BitOasis engaged in hard work to meet the requirements for its license reinstatement, particularly focusing on serving institutional investors and eligible retail investors. Their persistence paid off eventually with the full operational license.
A Notable Event: CoinDCX’s Acquisition of BitOasis to Enter the MENA Market
In August 2023, the investment came for BitOasis from India’s CoinDCX crypto exchange. Ola Doudin, Co-founder and CEO of BitOasis, said, “We are very excited to partner with CoinDCX, India’s leading crypto platform. This investment allows us to enhance our current products and expand into other markets. We’re excited about the opportunities this funding unlocks.”
BitOasis was acquired by CoinDCX
Later, in July 2024, BitOasis was acquired by CoinDCX. The sale marked the first international expansion for CoinDCX, trying to reach into the thriving market of MENA. Owning BitOasis gave it a strong foothold, as it already had licensing to operate in the UAE and Bahrain, placing CoinDCX in a better strategic position to grow in the MENA region.
Comparison of CoinDCX and BitOasis before Merger:
FeatureCoinDCXBitOasisPrimary RegionIndiaUAE, BahrainUser BaseOver 15 millionNot officially disclosedTrading VolumeOver $840M/quarter (past data)$6B since 2016 (~$188M/quarter over 8 years)LicensingOperational license in IndiaFull VASP license in Dubai, operational license in Bahrain
More News: India-based crypto exchange CoinDCX beefs up AML protection with Solidus Labs
Impact on the Crypto Market in UAE and MENA
The full operational license granted to BitOasis by VARA, coupled with the proposed acquisition by CoinDCX, has the following implications:
Crypto Market Growth in the UAE: The UAE is fast shaping into a strictly regulated crypto hub with major exchanges and brokerages setting up shop in the country. Development speaks of determination by the government of UAE for a clear and safe crypto ecosystem. VARA also licensed various exchanges like Crypto.com, OKX—yet to get an approval—Backpack Exchange, Toko, and Binance, also yet to get final approval along with brokerages Aquanow, Fasset, CoinMENA, GCEX, Fuze, and Toko.Expansion by International Crypto Companies: Major Indian crypto exchange CoinDCX made its first move to enter the MENA market with the acquisition of BitOasis. This is a strong testament to the immense potential of the MENA region and the rising interest of global crypto companies in this area.Increased User Trust: The obtaining of a full operational license from a respectable regulatory body like VARA results in increased user trust towards BitOasis and increases the development of the crypto market in the UAE and at large, MENA. The deal will bring better user experiences, with myriad product offerings and varieties of tokens.
Overview of Challenges and Opportunities
While securing licenses and forging partnerships opens promising avenues, some challenges faced by BitOasis and CoinDCX in this regard include the following:
High Competition: The cryptocurrency markets proved to be a very competitive space. The onus will be upon BitOasis and CoinDCX to be able to continuously create product, service, and user experiences that can help them compete with other market players.Evolution of Regulation: The regulative and legal environment related to cryptocurrencies is subject to continuing evolution and possibly unpredictable variation. Both are supposed to keep themselves updated to cope with any compliance and risk issues.Security and Safety: Security is the most paramount thing in the crypto industry. BitOasis and CoinDCX have to invest heavily in security technologies that protect users’ assets from cyber-attacks.
These challenges, however, are also opportunities. Blockchain and crypto technologies are opening up vast potential. With strategic collaboration coupled with regulatory support, BitOasis and CoinDCX can seize such opportunities to lead the crypto markets of the UAE and MENA.
