cryptopolitan.com
OKX crypto exchange launched its AED-denominated trading service in the United Arab Emirates (UAE) after earning full regulatory approval from the Virtual Assets Regulatory Authority (VARA).
OKX will now be the first major exchange to make AED services accessible to retail and institutional investors and offer regulated derivatives in the UAE.
OKX will only give eligible traders access to its derivative trading
Crypto exchange OKX has launched its trading platform in the UAE, becoming the first exchange to integrate AED banking and an AED order book in the region.
The exchange will also offer derivative trading on its platform; however, this will be exclusive to eligible traders and institutional investors meeting specific criteria.
OKX said it would only grant users who have taken the required knowledge test and suitability assessment access to derivative trading. To be eligible, users must also submit documentation proving they have 500,000 dirhams, about $136,000 in cash, which must remain liquid for a “reasonable” period, which remains unspecified.
The exchange also clarified that institutional investors must consent to Know Your Customer requirements and meet at least two of the three liquidity criteria: a minimum balance sheet of $20 million, an annual net turnover of $40 million, or total own funds of at least $2 million.
Rifad Mahasneh, OKX’s general manager for the Middle East remarked:
We have two targets – to be the retail app of choice and market and to start converting institutions in the UAE to enter the space. The return on investment is going to come from our ability to convert traditional institutions.
~Rifad Mahasneh
According to Mahasneh, the exchange will offer 280 tokens and 400 trading pairs in the region.
Major crypto exchanges may join OKX in the UAE
Since July 2023, crypto exchanges have had to seek licenses from the Virtual Assets Regulatory Authority (VARA) to operate in Dubai. In April 2024, Binance earned full regulatory approval from the agency. According to Binance, all UAE residents will have to transition from its global platform to its Binance FZE exchange, commonly known as Binance Dubai, by 15 December 2024.
The locally supported exchange is also expected to offer more than 300 crypto tokens and allow AED services requiring UAE users to update their Know Your Customer details.
Crypto.com also recently acquired its full license from VARA and has even partnered with Standard Chartered.
VARA gave OKX its full license on September 17, and according to its general manager, Mahasneh, the regulatory approval shows the agency’s confidence in its exchange. However, he mentioned that it took them nearly 24 months to ensure they complied with all of VARA’s conditions.