LUCKNOW (CoinChapter.com) — Dubai’s Virtual Assets Regulatory Authority (VARA) has issued a stern notice to the OPNX exchange following its failure to settle a $2.7 million fine for violating marketing regulations.
The exchange’s failure to comply with the payment has raised concerns within the regulatory authority, sparking discussions about potential further actions.
Dubai has long been recognized as an attractive destination for crypto-related businesses due to its accommodating regulatory policies. However, this favorable climate comes with the expectation of adherence to established rules and regulations.
VARA’s recent action against the OPNX exchange underscores the authority’s commitment to maintaining the market’s integrity.
VARA Considers Stringent Measures
OPNX has been no stranger to controversy since its inception.
Dubai’s VARA now contends that the exchange has not fulfilled its obligation to pay a substantial fine of AED 10 million ($2.7 million) imposed on May 2, 2023. This fine stems from the exchange’s violation of marketing, advertising, and promotions guidelines.
While VARA has not outlined specific punitive actions against the OPNX exchange, it has hinted at potential measures. These measures include legal action or additional financial penalties.
The move reinforces VARA’s resolve to uphold the standards outlined in the rulebooks introduced in February. The regulatory authority clarified that non-compliance could have substantial consequences for virtual asset service providers (VASPs).
OPNX’s Attempt at Reputation Recovery
The OPNX exchange has garnered significant attention, primarily due to its association with co-founders from the defunct crypto hedge fund Three Arrow Capital and the bankrupt crypto exchange CoinFLEX. To counter negative sentiment within the crypto community, the exchange’s co-founder, Kyle Davies, announced a “shadow recovery process” in July.
This initiative was introduced to support Three Arrow Capital creditors. These creditors have shown their backing for the new OPNX exchange. Notably, Davies indicated that those defaming the OPNX exchange would be ineligible to participate in this process.
Market Response and Token Performance
The native token of the OPNX Exchange (OX) has faced fluctuations in the market. Recent data from CoinMarketCap reveals that the OX token is trading at $0.06261.
This reflects a decrease of approximately 5% over the past 24 hours. As the situation with the exchange unfolds, market participants will closely observe developments in Dubai’s regulatory stance and OPNX’s efforts to address its challenges.
