BitOasis Suspends UAE Dirham/BTC Trading Over “Issues” with Servicing Bank

Regulation 1 min, 48 sec READ

by Tom Nyarunda

Temporary suspension of AED wire deposits and withdrawals could send a message that United Arab Emirates banks are still wary of crypto trading.

Dubai-based crypto exchange BitOasis has suspended all trading of UAE Dirhams (AED) with Bitcoin due to “issues” with their servicing bank.

In a communication cited by Arabian Business, BitOasis states that the restrictions were enforced because of concerns they have with the bank they work with. All other means of buying and selling of digital currencies on their platform including cryptocurrency withdrawals to digital wallets remain unaffected.

The communication cautioned users:

“If you leave your fiat balances, the only way for you to withdraw your funds after May 15 would be to convert them to cryptocurrency and send them to an external wallet.”

An official announcement sent to account holders noted that credit card deposits would not be available beyond Wednesday, June 16. However, there was no announcement regarding when the suspension affecting AED fiat withdrawals would be lifted.

BitOasis Stopped Withdrawal and Deposit Support

Prospective UAE cryptocurrency investors who hoped to reap rewards from last year’s Bitcoin mania were disappointed in January 2018 when BitOasis suspended deposits and withdrawals from some local banks. The exchange stopped support for withdrawals and deposits from customers of Emirates NBD, Mashreq, and Noor Bank after the banks declined transfers from the exchange. 

It is common knowledge in the region that most banks in the United Arab Emirates adhere to the UAE Central Bank's rules and regulations regarding “suspicious transactions” while the central bank itself polices high-value transactions.

BitOasis is the UAE’s leading cryptocurrency exchange trading digital currencies in North Africa, Saudi Arabia, and Kuwait. This service restriction could become a major setback for Ola Doudin, the BitOasis founder and CEO. Doudin had planned to assist the UAE’s authorities in developing cryptocurrency regulations. Doudin remains positive about regulations:

“In 2018, our priority is working with regulators to provide regulation for our business and our operations...We have achieved good progress in that area and we are working alongside local regulators to license our business.”