BitOasis confirms suspension of dirham transactions from June 4
Cryptocurrency exchange has previously fallen foul of the banks and regulators
BitOasis, the Dubai-based cryptocurrency exchange which allows customers to buy and sell Bitcoin in exchange for dirhams or dollars, has told its users they will not be able to withdraw or deposit dirhams after June 4.
The announcement follows the company’s communication last week to customers, informing them that they had 24 hours to initiate a dirham transaction before the service was no longer available.
In a blog post yesterday, Bitoasis said it had “been able to confirm the extension of deposits and withdrawals in AED [dirhams] for our customers until June 4th.”
The Middle East’s largest cryptocurrency exchange, BitOasis added that it was “working hard on providing alternative payment options ahead of June 4th, which we hope will be satisfactory to our customers.”
It did not provide any additional details on the alternative payment options it was seeking to introduce, with much of the statement focusing on the company’s collaboration with the government’s regulators.
This is not the first time BitOasis has run in to trouble with the banks or authorities: In January, local banks — Emirates NBD, Mashreq, and Noor Bank — began blocking customers’
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In the latest blow to the company, which operates in the UAE, Saudi Arabia, and Kuwait, BitOasis has blamed its issuing bank for the decision to halt withdrawals and deposits in dirhams.
Losses
Prakash Kalaimani, a BitOasis customer, complained on social media platform Twitter about the suspension, stating he was likely to lose money on his investment if he was forced to sell now.
“I am very unhappy... [it] is so unfair. we purchased in high price and if we sell and withdraw the money, than it will be the loss,” Kalaimani tweeted.
Currently, one Bitcoin is worth Dh30,548, down from a high in December 2017 of over Dh70,000.
In response, +0.43% BitOasis the told
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However, in its initial statement to its customers, the company said that “currently we do not have any date on when we will be reactivating AED fiat withdrawals,” but added that it was working hard to find a solution.
After the initial issues with local banks in January, BitOasis told Gulf News that it was “actively engaging” with the UAE’s banks and regulators, and had received a “positive” response from them.
In the company’s latest statement published yesterday, the company said that being at the forefront of such a nascent technology meant facing “new challenges as we try to grow and educate all stakeholders in the market.”
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