Crypto Exchange OKX Receives VASP License in Dubai
Crypto exchange OKX has obtained a virtual asset service provider (VASP) license in Dubai through its subsidiary, OKX Middle East Fintech FZE. This move demonstrates the company’s commitment to expanding its global reach.
The license, issued by the Dubai Virtual Assets Regulatory Authority (VARA), is currently inactive and awaiting the fulfillment of specific conditions and localization requirements.
Regulated Virtual Asset Services for Institutional and Retail Clients
Once the license becomes active, OKX Middle East will be able to provide a range of regulated virtual asset services and spot trading options to both institutional and qualified retail clients.
Dubai’s Growing Crypto Industry
Dubai is emerging as a prominent destination for the crypto industry. As the world’s second-largest exchange by trading volume, OKX initially received a preparatory license from VARA in June last year. With this recent development, it now holds an operational license.
OKX’s general manager for the MENA region, Rifad Mahasneh, expressed excitement about the potential for Dubai to become a hub for web3 and crypto. He looks forward to contributing to the flourishing ecosystem in the region.
Dubai’s Legal Framework for Cryptocurrencies
In March 2022, Dubai’s Prime Minister and Ruler approved a new law establishing a legal framework for virtual assets. VARA was granted enforcement powers, except in the Dubai International Financial Centre.
Mahasneh praised VARA’s efficient licensing process and highlighted the importance of clear regulations in promoting responsible growth within the cryptocurrency space.
A Thriving Crypto Presence in Dubai
Dubai continues to attract crypto companies, with many establishing a presence in the region. Notable examples include Crypto.com and Hex Trust receiving their VASP licenses from VARA in November 2023, and Nomura’s crypto arm, Laser Digital, obtaining its operating license approval in Dubai in August.
Hot Take: Dubai’s Rise as a Crypto Hub
Dubai’s proactive approach to cryptocurrency regulation and its support for the crypto industry has positioned it as a thriving hub for digital assets. With OKX’s newly acquired VASP license, the city further solidifies its status as an attractive destination for crypto businesses. The partnership between OKX and VARA highlights the importance of clear regulations in fostering responsible growth within the cryptocurrency space. As more companies establish a presence in Dubai, the region is poised to become a significant player in the global crypto landscape.
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