Dubai’s Virtual Assets Regulatory Authority (VARA) has issued a notice against the OPNX exchange after the company failed to pay a $2.7 million fine for violating marketing rules.
Dubai has been one of the favorite destinations for crypto companies due to its regulatory policy. The region has welcomed the crypto companies, provided they comply with the regulations.
VARA Threatens OPNX With Further Action
Since its inception, the OPNX exchange has generated controversy. Now Dubai’s VARA has said that the OPNX exchange failed to pay an AED 10 million ($2.7 million) imposed on May 2, 2023, for violating marketing, advertising, and promotions rules.
VARA did not specify the exact actions it would take against the OPNX exchange. However, it explores actions such as dragging the exchange to court or imposing additional fines.
In February, VARA introduced rulebooks consisting of guidelines for virtual assets service providers (VASPs). Non-compliance with the guidelines may invite heavy penalties from the regulator.
OPNX Tries to Tackle Defamation
OPNX has remained controversial for various reasons. Its core team comprises co-founders from the bankrupt crypto hedge fund Three Arrow Capital and the bankrupt crypto exchange CoinFLEX.
In June, crypto community members alleged that the exchange was faking its trading volume when OPNX boasted about an all-time high volume.
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While the exchange generates community backlash, one of the co-founders, Kyle Davies, announced what he called a “shadow recovery process” in July through an X (Twitter) Space. He claimed it is an initiative to donate to Three Arrow Capital creditors, who support the new OPNX exchange. However, he said that people defaming the OPNX exchange would be ineligible.
According to data from CoinMarketCap, the native token of OPNX Exchange (OX) is trading at $0.06261, down by around 5% in the past 24 hours.
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