Dubais Regulatory Authorities Impose $2.7 Million Fine on Co-founders of Three Arrows Capital for OPNX Exchange

Co-founders of Three Arrows Capital Hit with $2.7 Million Fine by Dubai Regulatory Authorities

According to a recent notice, the co-founders of the once-prominent crypto hedge fund, Three Arrows Capital, have been hit with a massive $2.7 million fine by Dubai’s regulatory authorities. This is a result of their involvement in the new digital asset exchange, OPNX.

Key Points:

Dubai’s Virtual Assets Regulatory Authority (VARA) has imposed a fine of close to $2.8 million on the cryptocurrency exchange OPNX and its founders.
OPNX, established by Kyle Davies and Su Zhu, had previously faced VARA’s censure in May.
The founders have settled penalties of $54,451 each due to non-compliance with marketing, advertising, and promotional regulations.
Given the outstanding fine, VARA will decide on subsequent measures to be taken against OPNX.
This year, Dubai has intensified its regulatory scrutiny on crypto, introducing a new framework that mandates firms serving retail investors to obtain a license from VARA.

Dubai’s Regulatory Crackdown on Crypto

Dubai has been intensifying its regulatory scrutiny on cryptocurrencies this year. The introduction of a new framework mandates firms serving retail investors to obtain a license from VARA. This move is part of the United Arab Emirates’ plan to be removed from the Financial Action Task Force’s “gray list.” Kyle Davies and Su Zhu, co-founders of Three Arrows Capital, established OPNX as a platform for trading cryptocurrency claims. They have chosen Dubai as one of their main operational hubs following the downfall of their hedge fund.

Hot Take:

The massive fine imposed on the co-founders of Three Arrows Capital reflects Dubai’s serious attitude towards regulating the crypto industry. This crackdown is in line with the country’s goal to enhance its reputation and crack down on illicit financial activities. It serves as a warning to other crypto firms and individuals to comply with regulations or face severe penalties. As the crypto industry continues to grow, it is crucial for companies to operate within the bounds of the law to ensure the long-term success and legitimacy of the industry.