Dubai’s VARA Imposes $2.8 Million in Fines on Crypto Exchange OPNX and Founders

Dubai’s VARA Imposes $2.8 Million in Fines on Crypto Exchange OPNX and Founders

Crypto News – Dubai’s Virtual Assets Regulatory Authority (VARA) has taken stringent measures against cryptocurrency-related activities, resulting in fines amounting to nearly $2.8 million for the co-founders of the crypto exchange OPNX and the exchange itself. Kyle Davies and Su Zhu, co-founders of OPNX and also associated with the unsuccessful crypto hedge fund Three Arrows Capital (3AC), have been penalized for violating market regulations.

In an announcement made on Wednesday, VARA outlined the fines imposed on the co-founders and their exchange, citing multiple breaches of regulations. The exchange, OPNX, received a substantial fine of 10 million dirhams (approximately $2.7 million) for its failure to comply with market regulations. Notably, this fine remains outstanding as of the publication of the notice.

Additionally, Kyle Davies, Su Zhu, Mark Lamb (OPNX co-founder), and Leslie Lamb (CEO) each faced fines of $54,000 individually. These penalties were attributed to their inability to meet the regulatory standards set by VARA concerning marketing, advertising, and promotional activities.

Although the fines levied against these individuals were quickly paid, VARA has emphasized its commitment to pursuing further actions in response to OPNX’s unpaid penalty. These actions may involve additional financial penalties and strategies to recover the unpaid fine, along with corrective measures to rectify the behavior that led to the regulatory violations.

These regulatory measures taken against OPNX and its co-founders coincide with Dubai’s escalated oversight of the cryptocurrency sector. The city has introduced a novel regulatory framework mandating crypto-related companies catering to retail investors to secure licenses from VARA.

Despite its modest beginnings earlier in the year, OPNX, co-founded by Kyle Davies, Su Zhu, and Mark Lamb, experienced remarkable growth in trading volume, reaching $30 million by late June.