OKX Secures Conditional Crypto License in Dubai

OKX, a prominent global crypto exchange, has successfully obtained a conditional virtual asset service provider (VASP) license in Dubai. This development marks a pivotal moment in OKX’s strategic expansion efforts and reflects the evolving regulatory landscape in the Middle East.

Dubai’s Virtual Assets Regulatory Authority (VARA), the principal regulator for crypto-related activities in the region, granted the license to OKX’s Dubai subsidiary. However, the license remains non-operational until OKX meets all regulatory requirements set by VARA. According to Rifad Mahasneh, OKX’s General Manager for the Middle East and North Africa region, the company is actively working to fulfill these requirements and anticipates the license becoming operational within a few months.

Once operational, OKX Middle East will offer a range of regulated VASP services. These services include spot and fiat trading, AED deposits and withdrawals, and spot trading pairs. The services are expected to cater to both retail and institutional users, highlighting OKX’s commitment to providing comprehensive crypto solutions in the region.

This move comes after Sheikh Mohammed bin Rashid Al Maktoum, Dubai’s Prime Minister and ruler, approved a new virtual assets law in March 2022, establishing a robust legal framework for cryptocurrency operations in Dubai. VARA, appointed by the ruler, has been vested with enforcement powers, excluding the Dubai International Financial Centre.

Mahasneh praised VARA’s efficient license application process and recognized its effectiveness in regulating the local virtual assets sector. He also emphasized the importance of well-defined regulations in promoting responsible growth within the crypto space.

The acquisition of the VASP license by OKX is a testament to the company’s adherence to regulatory compliance and its ambition to be a key player in the global crypto market. It also underscores Dubai’s position as a burgeoning hub for crypto and blockchain businesses, aligning with the emirate’s vision to establish a regulated environment for digital assets.

OKX’s expansion into Dubai reflects a strategic move to tap into the Middle East’s growing interest in cryptocurrencies. As regulations continue to evolve, OKX’s proactive approach to compliance positions it well for long-term success in the region and beyond.