According to a notice published on August 16, 2023, Wednesday, Dubai’s Virtual Assets Regulatory Authority (VARA) has fined OPNX, a cryptocurrency bankruptcy claims exchange. Along with the exchange, VARA also fined its creators with nearly $2.8 Million.
“The CEO of OPNX Exchange, Leslie Lamb, and executives Kyle Davies, Su Zhu, and Mark Lamb were all issued a $58,000 fine for violating marketing regulations in the emirate,” as noted in the notice.
It is to be noted that Kyle Davies and Su Zhu are the founders of the collapsed digital asset hedge fund Three Arrows Capital (3AC). While they are now “facing a fine issued by Dubai’s dedicated crypto regulator over the OPNX exchange.”
Notice by Dubai’s Crypto Regulator
Dubai’s crypto regulator, VARA, published a notice of fines for the OPNX exchange. VARA mentioned in the notice that it has issued a fine of 10 Million United Arab Emirates Dirhams (nearly $2.7 million) for violations of its market regulations. It also noted that the fine remains unpaid.
Along with the exchange, VARA also issued a fine of 200,000 AED (nearly $54,000) to executives of the OPNX, including Davies, Zhu, Mark Lamb, and its CEO, Leslie Lamb. The fine issued was “for violations of the marketing, advertising, and promotions laws of Dubai.”
As the regulator noted, the individuals mentioned have already paid their dues however the $2.7 Million fine remains unpaid. According to VARA, it would “determine consequential actions warranted against OPNX.”
The regulator also highlighted that it may include further penalties or more fines or even take the necessary actions to get back the payment. It may include “referring the matter to any law enforcement agency(ies) or competent courts.”
It must be noted that earlier this year OPNX was founded by the 3AC co-founders along with CoinFLEX founder Mark Lamb. On its first day, the OPNX exchange showed a trading volume of just $13.64. Whereas, the daily trading volume of the exchange had risen up to $30 Million by late June.
Dubai’s regulator has been taking a firm stance on crypto violations this year. Mid-July of this year, VARA also suspended the license of crypto exchange BitOasis. It was the first exchange to get an operating license in the Emirate. Whereas, for not meeting mandated conditions within a deadline by the regulator, the crypto exchange is charged by VARA.
Furthermore, Dubai’s VARA is increasing the compliance processes and extending the coverage for its rules. As Gulf News reported, “Last week, in alliance with Dubai Department of Economy & Tourism, it will ‘deploy end-to-end processes to ensure market-leading consumer protection and security standards’.”
