Dubai’s burgeoning cryptocurrency landscape has recently witnessed the imposition of a hefty fine on the co-founders of the crypto hedge fund Three Arrows Capital’s latest crypto exchange, OPNX. The move comes as Dubai’s Virtual Assets Regulatory Authority (VARA) takes a firm stance on upholding stringent regulations within the crypto domain.
VARA disclosed that it had levied a substantial fine of AED10 million ($2.7 million) on OPNX crypto exchange in May, which has remained unpaid to date. The regulatory body further revealed that individual penalties of AED200,000 ($54,451) each were imposed on Su Zhu and Kyle Davies, along with OPNX’s co-founders Mark Lamb and Sudhu Arumugam. These penalties were due to lapses in adhering to marketing, advertising, and promotional guidelines.
Against this backdrop, Dubai has adopted a proactive approach to regulating the crypto sector, introducing comprehensive frameworks that necessitate full licensing from VARA for companies catering to retail investors.
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The brainchild of Su Zhu and Kyle Davies, in collaboration with Mark Lamb and Sudhu Arumugam, OPNX made its debut earlier this year as a prominent trading platform for crypto claims. Following the aftermath of the Three Arrows Capital fund’s downturn, the duo sought to establish Dubai as their operational hub.
However, regulatory concerns surfaced as early as February when OPNX was found to be soliciting customers and collecting personal data without proper authorization. The repercussions were far-reaching, extending to the reprimanding of Leslie Lamb, CEO of OPNX, as well as co-founders Mark Lamb and Sudhu Arumugam.
Leslie Lamb, OPNX crypto exchange; CEO, emphasized the company’s cooperation with VARA’s ongoing investigation, asserting that the firm had not intentionally flouted any regulatory guidelines. Despite the challenges, both Su Zhu and Kyle Davies continued to promote OPNX, advocating its offerings on social media.
In conclusion, Dubai’s crypto exchange landscape is undergoing a period of transformation as regulatory authorities strive to ensure compliance and accountability. The fine levied on cryptocurrency exchange, underscores the commitment to upholding transparency and regulatory standards in the dynamic world of cryptocurrency.