The Dubai Virtual Asset Regulatory Authority (VARA) has taken action against OPNX, a tokenized exchange for bankrupt crypto entities, and its founders for carrying out virtual asset exchange services without the necessary permits from VARA.
The exchange had also been promoting its services and native token, FLEX, without regulatory approval. In this blog post, we will dive deeper into the details of this incident.
VARA became aware of OPNX’s activities in February 2023 when the exchange began soliciting personal data from the public to participate in its new exchange through social media platforms. Despite this, OPNX launched the exchange on April 4th, operating in contravention of local laws.
VARA issued several cease and desist orders, followed by a written reprimand to the exchange’s founders and CEO. With the continued lack of satisfactory remedial action by the responsible parties, VARA has stated that it is continuing to actively monitor the situation and investigate OPNX’s activity to assess further corrective measures that may be required to protect the market.
OPNX has faced criticism from investors, with some distancing themselves from the exchange. Despite this, OPNX CEO Leslie Lamb announced a list of investors, which includes a Saudi Arabian investment firm among the list.
The incident involving OPNX serves as a reminder of the importance of regulatory compliance in the virtual asset space. VARA’s actions highlight the seriousness of operating without the necessary permits and approvals, and the potential consequences that may follow. It is important for virtual asset exchanges to adhere to regulatory frameworks to ensure the protection of investors and the stability of the market.
