OKX granted conditional VASP license in Dubai for exchange operations

Crypto exchange OKX has secured a virtual asset service provider (VASP) license in Dubai via its subsidiary, OKX Middle East Fintech FZE, marking another step in the firm’s global expansion.

The license, issued by the Dubai Virtual Assets Regulatory Authority (VARA), is currently non-operational, pending the fulfillment of specific conditions and localization requirements.

Once active, the license will enable OKX Middle East to offer a range of regulated virtual asset services and spot trading options to both institutional and qualified retail clients.

Dubai is increasingly becoming a hotspot for the crypto industry. OKX, the world’s second-largest exchange by trading volume, initially received a preparatory license from VARA in June of last year. The latest development elevates its status to an operational license holder.

Rifad Mahasneh, general manager for the MENA region of OKX, said in the statement that the region holds huge potential to become a hub for web3 and crypto. “We eagerly anticipate the chance to further enhance the already flourishing ecosystem throughout the region.”

In March 2022, Dubai’s Prime Minister and Ruler, Sheikh Mohammed bin Rashid Al Maktoum, approved a new law for virtual assets, establishing Dubai’s legal framework for cryptocurrencies. The ruler also assigned enforcement powers to VARA, covering all special development and free zones except the Dubai International Financial Centre.

Mahasneh commended the efficiency of VARA’s licensing process and acknowledged its role in effectively regulating the local virtual assets sector.

Mahasneh also emphasized that the partnership between OKX and VARA underscores the critical role of clear regulations in fostering responsible growth within the cryptocurrency space.

Dubai’s appeal to crypto companies is evident in the recent influx of firms establishing a presence in the region. Notable instances include Crypto.com and Hex Trust receiving their VASP licenses from VARA in November 2023 and Nomura’s crypto arm, Laser Digital, securing its operating license approval in Dubai in August.