Cryptocurrency exchange OKX has received regulatory approval from Dubai’s financial authorities to offer retail virtual asset services to customers.
In a statement on Jan 16, the company disclosed that its Dubai subsidiary has been granted a virtual asset service provider license (VASP) from Dubai’s Virtual Asset Regulatory Authority (VARA) to expand its range of services.
We’re proud to announce OKX Middle East Fintech was granted the VASP license from Dubai’s VARA 🇦🇪
OKX MENA GM @RifadM explains why this is a game changer for OKX, and a reflection of Dubai’s pioneering approach to virtual assets 👉 https://t.co/cOT8yzEPB3 pic.twitter.com/xBuTR9AFZc
— OKX (@okx) January 16, 2024
The company intends to reshape cryptocurrency services in the city and the wider region. For OKX, building a regulated Web3 and virtual assets space in the MENA region is a milestone achievement.
Per the release, the VASP license is currently non-operational. That is until the exchange satisfies certain requirements set by the regulator for operational approval.
“The license remains non-operational until the company fully satisfies all remaining conditions and select localization requirements defined by VARA, following which it will be able to commence operations, subject to regulatory verification and approval.”
At the moment, the exchange is working to finalize the regulatory nod and expects completion in the coming months.
The license will allow the exchange to deploy multiple services to the city, expanding its Middle Eastern operations. OKX will offer retail investors services around spot pairs. It will also target larger institutional investors through the OKX App and its website.
The company pledged full transparency and dedication to user protection in line with all market safety principles under VARA’s guidance.
OKX looks at Dubai’s market with optimism
Rifad Mahasneh, the General Manager of OKX in the Middle East and North African region stated that MENA holds enormous potential to spur growth and drive adoption in Web3 as it seeks to create numerous hubs for the industry.
“The future of digital assets and capital markets lies in the hands of regulated entities, and Dubai, along with VARA, has succeeded in establishing a distinctive environment that fosters the growth of Virtual Asset Service Providers. The MENA region holds immense potential to become a hub of excellence for Web3.”
Still, on the prospects of Dubai’s expansion, Tim Byun, the head of government relations at OKX, stated that Dubai and the city’s authorities are world leaders in digital asset regulation, establishing a standard framework to guide startups and investors.
”This license was a crucial step for OKX as we move from a trust-based system to one that is trustless and empowers users to take control of their financial future. Dubai is an important market for us, and we’re excited to build strong relationships with our users and contribute to the development of its crypto and Web3 ecosystem,” he added.
While OKX seeks to expand its global services, it does not operate in the United States due to regulatory concerns.
