Dubai’s Virtual Assets Regulatory Authority (VARA) recently issued a written reprimand to founder of 3AC Su Zhu, Kyle Davies and two other co-founders of the new exchange, OPNX. The reprimand was issued on April 18 and was due to the group’s operation and promotion of the exchange without a local license.
According to a report from Bloomberg, VARA stated that it will continue to investigate OPNX’s activities and will determine if further corrective actions are necessary. It is important to note that operating a cryptocurrency exchange without a license is illegal in Dubai, and VARA is committed to ensuring that all exchanges comply with local regulations.
The founders of OPNX have not yet commented on the matter. However, it is clear that regulatory compliance is a key factor for any cryptocurrency exchange looking to operate in Dubai. As the industry continues to grow, it is likely that regulatory oversight will become increasingly important for both consumers and businesses alike.
For now, it remains to be seen what further action VARA will take regarding OPNX’s activities. However, this recent reprimand serves as a reminder to all cryptocurrency businesses that compliance with local regulations is essential for long-term success in the industry.