In a significant development for the cryptocurrency sector in Dubai, the virtual asset service provider (VASP) OKX’s Dubai subsidiary has been granted a VASP license by the Virtual Assets Regulatory Authority (VARA). This approval marks a pivotal moment for OKX in expanding its services in the Middle East. However, the company has stated that it will remain “non-operational” until it can meet all the regulator’s requirements.
Rifad Mahasneh, OKX’s General Manager for the Middle East and North Africa region, the company’s current status. He emphasized that OKX is diligently working to fulfill VARA’s regulatory demands and anticipates the license becoming operational in a few months. Once fully compliant, OKX Middle East will be authorized to offer a range of regulated VASP services. These services include spot and fiat trading services, AED deposits and withdrawals, and spot trading pairs. Mahasneh highlighted that these offerings would cater to both retail and institutional users, indicating a significant expansion of OKX’s customer base in the region.
The granting of the license comes in the wake of a new virtual assets law approved in March 2022 by Sheikh Mohammed bin Rashid Al Maktoum, the Prime Minister and Ruler of Dubai. This law established a comprehensive legal framework for cryptocurrencies in Dubai and appointed VARA with enforcement powers in the region’s special development and free zones, excluding the Dubai International Financial Centre.
Mahasneh praised the efficiency and effectiveness of VARA’s license application process, acknowledging the regulator’s role in effectively regulating the local virtual assets sector. He further noted the importance of the collaboration between OKX and VARA, underscoring the value of well-defined regulations in promoting “responsible growth” within the crypto space.
This move by OKX to comply with Dubai’s regulatory standards reflects a growing trend in the cryptocurrency industry, where major players are increasingly seeking to align with local laws and regulations. This approach not only ensures legal compliance but also fosters a more secure and stable environment for crypto users and investors. The collaboration between financial technology companies and regulatory authorities, as seen in the case of OKX and VARA, is pivotal in shaping a sustainable and reliable future for the digital assets market.
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