Photo credit: Arabian Business

Cryptocurrency exchange BitOasis has won a license to operate in Bahrain, enabling the platform to offer its broker-dealer services to local crypto users, it announced on June 19.

The United Arab Emirates-headquartered exchange received a Category 2 Crypto-Asset Services License from the Central Bank of Bahrain (CBB), allowing the company to serve retail, corporate, and institutional Bahrainy clients through its local entity, BitOasis Bahrain.

BitOasis Bahrain will go live in the second half of 2024. The company said it had already launched its office in the kingdom, comprising a small team of core employees, with plans to scale its operations upon official launch.

Crypto in Bahrain

Ola Doudin, co-founder and chief executive of BitOasis, commented on the importance of regulatory developments in the regional crypto market, noting the support from the CBB. She emphasized that the regulatory framework established by the central bank is instrumental for crypto players to introduce new products in the virtual asset sector.

The kingdom has actively pursued the development of crypto in the country by implementing various regulations based on international standards, and much of its crypto regime is modeled after European directives, specifically regarding money laundering. In 2019, the CBB issued a legislative framework to oversee and manage crypto-related activities. Subsequently, the financial authority amended its crypto assets module to expand its scope to “digital token offerings” and virtual assets that qualify as a security.

The CBB’s regulatory framework outlines four distinct categories of licenses, from Category 1 through 4, with Binance being the first crypto asset service provider (CASP) to secure the latter in May 2022.

BitOasis also joins CoinMENA, Rain, and ARP Digital as licensed CASPs in Bahrain.

Read more: Crypto.com gets approval for exchange services in Ireland

BitOasis springs back in Dubai post-hiatus

Following a temporary suspension, BitOasis’s regulatory journey has taken a turn as it now resumes operations in Dubai. The emirate’s Virtual Assets Regulatory Authority (VARA), which last year suspended the exchange’s minimum viable product (MVP) license, lifted the moratorium on April 12.

BitOasis was among the first to receive approval from VARA, having secured its MVP permit in April 2023, a month after the Dubai government formed its virtual asset industry regulator.

Only 13 crypto firms have full virtual asset service provider (VASP) licenses in Dubai, including Hex Trust, Binance, Crypto.com, and Nomura’s Laser Digital.

Read more: Hex Trust secures another Dubai license for broker-dealer services