OKX cements Middle East Presence by securing a crypto license in Dubai.
The Dubai-based subsidiary of cryptocurrency exchange OKX, named OKX Middle East Fintech FZE, announced today (Tuesday) that it has received a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Asset Regulatory Authority (VARA), allowing the company to offer virtual asset exchange services.
The newly obtained license would allow the global crypto exchange to offer spot and spot pair services to institutional and qualified retail clients in the Middle East. However, the newly obtained license will remain non-operational as the company needs to “fully satisfy all remaining conditions and select localization requirements,” which is expected to be concluded in the coming weeks.
The operating license came months after VARA granted OKX’s Dubai subsidiary a preparatory license.
“The MENA region has immense potential to become a center of excellence for Web3 and virtual assets. We eagerly anticipate the opportunity to further enhance the already thriving ecosystem across the region,” said Rifad Mahasneh, General Manager for the MENA Region of OKX.
Mahasneh praised VARA’s license application process, explaining that it was facilitated efficiently. According to the executive, the regulator demonstrated its effectiveness in regulating the local virtual asset sector.
The executive also believes that the collaboration between his company and VARA highlights the importance of well-defined regulations when promoting “responsible” growth within the cryptocurrency space.
Today, OKX CMO @Haider posted the following on X:
“We have been granted the (VASP) license to prepare operations in Dubai. We will be opening up our spot markets w/ local currency pairs in the coming weeks. These services will be soon available to qualified investors and institutional clients.”
A Bit of Context
Once the VASP license is operational, it will allow OKX Middle East to offer regulated VASP services, including “spot and fiat trading services, deposits and withdrawals in AED and spot trading pairs.” The executive explained that the services will be available for retail and institutional users.
In March 2022, Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Ruler of Dubai, passed the Virtual Assets Law, establishing a legal framework for cryptocurrencies in Dubai. In addition, the ruler of Dubai also appointed VARA with enforcement powers in its special development zones and free zones, except for the Dubai International Financial Center (DIFC).
Dubai’s Bet on Crypto Companies
Dubai, one of the emirates of the United Arab Emirates known for its encouraging service-based businesses, simplified crypto rules with a framework last year and established a separate regulatory body, VARA, to oversee the sector.
Dubai’s decision to boost regulation of the cryptocurrency industry also encouraged many big and small names to establish their presence in the city. Crypto.com, Ripple, Binance and Bybit are just some of the names that can obtain crypto licenses from the Dubai regulator.
“This license was a crucial step for OKX as we move from a trust-based system to a trustless system that allows users to take control of their financial future,” said Tim Byun, global head of government relations at OKX. “Dubai is an important market for us and we are excited to build strong relationships with our users and contribute to the development of their crypto and Web3 ecosystem.”
Global cryptocurrency companies, including Coinbase, have been scrambling to explore the United Arab Emirates as a potential new market at a time when U.S. regulators and lawmakers are cracking down on digital assets.
By Audy Castaneda
