BitOasis, an United Arab Emirates-based cryptocurrency exchange has reportedly secured preliminary approval from financial regulators, as reported by Bloomberg on May 13.

Boasted as the Middle East’s first digital currency wallet that uses multi-signature technology, BitOasis was founded in 2015.  As per a previously made announcement, the firm has been looking to become fully licensed in the financial center Abu Dhabi Global Market (ADGM) by the end of this year.

The founder and CEO of BitOasis, Ola Doudin stated that  “we are hoping to be one of the first regulated exchanges to get that licence.” Bloomberg added in the report that BitOasis received preliminary approval to operate a crypto asset platform and wallets in April from the Financial Services Regulatory Authority of ADGM.

In order to obtain the license, the exchange has to meet specific technical and operational requirements. The firm expects to do so in the second half of the year, Doudin reportedly said:

“This is a huge milestone. It gives us legitimacy as well, and we can now work with regulated financial entities. We’re able to work with other regulators in the region, such as Saudi Arabia. Overall, it will boost our growth in the region, legitimize the space and expand our reach in the market.”

UAE has been stepping up its game and demonstrates a proactive approach toward cryptocurrencies. Richard Teng, head of the Financial Services Regulatory Authority of the ADGM, claimed last September that loss and theft of cryptocurrency negatively impacts its image as an asset. Teng stated at the time:

“This space needs to be properly regulated, otherwise there is the risk of financial crime. Every time a coin gets stolen or lost, it affects the confidence in this asset class.”

In February, Saudi Arabia and the UAE’s six commercial banks joined a digital currency project as both the countries announced an agreement to cooperate on the creation of a cryptocurrency in January. Last October, the Dubai government opened up about its intention to employ digital currency backed by the state and pegged to the UAE’s fiat currency, the dirham, for utility payments.

 

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