A significant media report pointed out that a retail crypto mining hardware company, Phoenix, is preparing to go public in Abu Dhabi, UAE. According to a Bloomberg report, the firm is reportedly mulling over conducting an initial public offering (IPO) in the UAE.
Notably, the United Arabs Emirates has instituted strict regulations and penalties against businesses that do not comply with its registration deadlines despite its crypto-friendly stance. So, it is expected that Phonix must meet the requirements of the UAE regulators before pursuing its goals of an IPO
Phoenix Technology Mulls IPO
According to the Bloomberg report, anonymous sources mentioned that there are discussions concerning the matter, and the details are not yet concluded.
Phoenix Technology is a UAE-based mining company establishing one of the largest mining facilities around the Middle East region. The firm has obtained distribution rights for numerous tech hardware manufacturers in the Middle East, Turkey, and Africa.
Notably, Coindesk reported on November 9, 2021, that Phoenix signed a deal worth $650 million to acquire mining rigs to boost its capacity to 1.4 GW, indicating expansion plans.
Also, according to what the company’s co-founder Bijan Alizadeh told Entrepreneur Magazine, Phoenix has been eyeing a UAE expansion.
“We used to see Miami and Singapore as the main hubs for crypto entrepreneurship, but I strongly believe that the UAE is the third crypto hub of the world.”
The UAE, A Crypto-Friendly Jurisdiction
Digital asset players operating domestically also agree that the United Arab Emirate’s infrastructure is way friendlier than that of the United States of America regarding the cryptocurrency industry.
But, despite the nation’s crypto-friendly stance toward digital asset companies, the UAE’s crypto regulatory bodies are also very strict regarding crypto regulations. The nation has established a crypto-dedicated regulatory body called the Dubai Virtual Asset Regulatory Authority (VARA).
Besides this, an emirate in the UAE known as Ras Al Khaimah (RAK) established a crypto-focused free trade zone known as the RAK Digital Assets Oasis, or the RAK decentralized autonomous organization (DAO).
The VARA holds a very strict stance concerning submitting license requirements and penalizes companies that do not comply with the deadlines.
On July 11, the Dubai Virtual Assets Regulatory Authority (VARA) suspended the operating license of the renowned crypto exchange BitOasis.
Notably, BitOasis is one of the leading crypto exchanges in the United Arab Emirates, and it was the first crypto entity to obtain an operating license in the country.
VARA mentioned that the crypto exchange could not submit the required documents and comply with the deadlines instituted by the regulatory authority. Currently, the agency is reviewing the Dubai-based company.
It is worth noting that VARA did not mention the details BitOasis failed to meet but noted that the exchange will only operate once it fulfills the conditions.
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