• The trading platform OPNX promoted by Kyle Davies and Su Zhu.
• Three Arrows Capital are at odds with regulators in Dubai.

According to a recent statement posted to its website, the regulator has taken the unusual step of issuing a formal reprimand to OPNX, an entity launched out of the crypto trading platform Coinflex, which has links to both Davies and Zhu.

“VARA became aware of OPNX soliciting, and collecting personal data from the public to participate in its new (to launch) exchange,” the regulator said in a statement. “Through social media platforms, OPNX had engaged in marketing the exchange without establishing warranted restrictions for residents of Dubai/UAE.”

VARA stands for “Virtual Assets Regulatory Authority”, which is Dubai’s regulatory authority for digital assets such as cryptocurrencies. It established in 2021 by the Dubai Multi-Commodities Centre (DMCC), a government entity that operates as a free trade zone in Dubai. VARA is under the control of the DMCC, which oversees its operations and ensures that it complies with relevant laws and regulations.

OPNX Operating Without License

According to the statement, OPNX singled out on account of operating without the requisite licenses, with the regulator adding that “further corrective measures may required.”

According to Bloomberg, OPNX launched by former classmates Davies and Zhu out of the crypto trading platform Coinflex, founded by Mark Lamb, which served as the launching pad for their venture. This was in turn headed by Lamb’s wife, Leslie Lamb.

Lamb confirmed via a WhatsApp message to Bloomberg that OPNX has never allowed customers from the UAE to create accounts. 

“At no point in time have UAE customers able to open an account on OPNX,” Lamb quoted in Bloomberg. Additionally, Zhu informed Bloomberg that he and Davies do not participate in the company’s day-to-day operations.