OKX Subsidiary Secures VASP License in Dubai

Published: Jan 16, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

The Dubai subsidiary of major cryptocurrency exchange OKX has secured a virtual asset service provider (VASP) license from regulators in Dubai, according to the details shared in the press release.

The license will enable the platform to launch localized fiat currency support and spot trading pairs for United Arab Emirates dirham (AED) when it becomes operational over the coming weeks.

  • OKX receives full operational clearance from the Dubai Virtual Assets Regulatory Authority.
  • The approval allows the exchange to offer AED deposits and withdrawals and AED-crypto pairs to attract UAE traders.
  • Dubai has emerged as a global crypto hub given its comprehensive regulatory framework for digital assets.

“This allows us to offer services to UAE residents, including spot trading and fiat-related services, which means deposits and withdrawals of local currency,” said OKX’s Rifad Mahasneh about the license. Mahasneh serves as OKX’s general manager for the Middle East and North Africa.

Read more: Bitcoin Is A ‘Highly Speculative, Volatile Asset,’ Says SEC’s Gensler

By trading through a regulated platform under Dubai supervision, OKX users gain enhanced consumer protections compared to operating in unregulated jurisdictions. The exchange touts its commitment to robust market integrity principles.

Dubai emerges as a crypto-friendly city

OKX is positioned to capitalize on surging Middle East interest in digital assets. Dubai in particular has taken steps to foster crypto innovation, including the licensing regime overseen by VARA.

The VARA framework covers areas like anti-money laundering requirements, capital adequacy, governance standards, and risk management. Stringent policies have attracted companies looking to offer virtual asset activities to locals in a fully compliant manner.

Read more: BlackRock CEO Backs Ethereum ETF Day After Bitcoin ETF Debut

“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, said Tim Byun,” OKX Global Head of Government Relations.

OKX joins several global exchanges expanding into Dubai to leverage the business-friendly crypto ecosystem. OKX is the fifth-largest cryptocurrency exchange by trading volume.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.