Dubai-based cryptocurrency exchange BitOasis has recently secured funding from a group of investors, including Indian digital-asset platform CoinDCX. The specific terms of the deal and the valuation of the exchange have not been disclosed. Existing investors Wamda Capital and Jump Capital also participated in the funding round.
BitOasis, established in 2016, provides 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, with Chainalysis research revealing it as the fastest-growing market between mid-2021 and mid-2022.
This funding round follows BitOasis’ successful fundraising efforts in 2021, where it raised $30 million. The company has made notable progress in the industry, acquiring one of Dubai’s “minimum viable product operational licenses” earlier this year. This license enables BitOasis to offer broker-dealer services for digital assets to qualified investors. However, the company faced regulatory setbacks in July when it was reprimanded by Dubai authorities for not meeting the required conditions set by the local regulator.
CoinDCX, on the other hand, recently achieved the status of India’s first cryptocurrency unicorn by raising approximately $90 million from investors led by B Capital Group. The funding round valued CoinDCX at $1.1 billion.
Dubai has emerged as one of the major crypto hubs globally, attracting significant players in the crypto space. For instance, Binance, the world’s largest crypto exchange, opened three offices in Dubai last year after obtaining the necessary licenses. However, Dubai has also intensified its regulatory oversight of crypto companies operating within its jurisdiction without proper licensing, despite its ambitions to become a global industry hub. In April, Dubai authorities reprimanded the OPNX crypto exchange for operating as an unlicensed and unregulated entity, leading to a cease-and-desist order from Dubai’s Virtual Assets Regulatory Authority.
Nevertheless, the crypto regulator in the country has issued MVP licenses to companies like Bybit, Crypto.com, Binance, and OKX, allowing them to operate in the region.