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Crypto exchange OKX has been approved by the Dubai Virtual Assets Regulatory Authority (VARA) to offer exchange services. OKX, however, says the licence will not be operational until the exchange meets further regulatory requirements. OKX General Manager for the MENA region, Rifad Mahasneh, commented;
We are working with VARA towards completing a few conditions before we can launch, and we are working to do so over the next few weeks.
Once operational, OKX, through its Middle East subsidiary, will be able to offer spot and fiat trading services to institutional and retail investors.
The VASP licence comes months after OKX earned a Minimal Viable Product (MVP) Preparatory licence from the Dubai regulator in June 2023. The preparatory licence allowed the exchange to fulfil the pre-conditions necessary for MVP operations in the region.
Dubai pushing to become a global crypto hub
The award of the VASP licence to OKX happens as regulators in Dubai and the United Arab Emirates seek to attain a global hub for digital asset innovations. This follows Dubai’s virtual assets law passed in March 2022, which created a legal framework for cryptocurrencies in the region.
Today, we approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the UAE’s position in this sector. The Authority will cooperate with all related entities to ensure maximum transparency and security for investors. pic.twitter.com/LuNtuIW8FM
— HH Sheikh Mohammed (@HHShkMohd) March 9, 2022
Several other global exchanges have also been approved for digital asset services in Dubai. Binance obtained its VASP licence in March 2022, giving it the authority to offer limited exchange services to pre-qualified investors. In November 2023, Crypto.com also earned a VASP licence for specified virtual asset services in Dubai.
Dubai’s moves are a contrast to other regulators, who remain sceptical about cryptocurrencies, with exchanges like Binance facing regulatory hurdles in markets such as the US and India. OKX’s Mahasneh says the collaboration with the Dubai regulator underscores the crucial role of well-defined regulations in enhancing responsible crypto innovation.
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