OKX Middle East Fintech FZE, the Dubai-based subsidiary of cryptocurrency exchange OKX, announced on Tuesday that the company has successfully obtained a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA), signaling its entry into the Middle East market.<h2 id="header-0">Non-operational license</h2>This newly acquired license positions OKX Middle East to offer spot services and spot pairs to institutional and qualified retail customers in the region. However, it should be noted that the operational aspect of the license is pending. The company stated that it will remain non-operational until all remaining conditions and select localization requirements are fully satisfied, a process anticipated to conclude in the coming weeks.Once operational, OKX Middle East will have the green light to provide regulated VASP services, facilitate AED deposits and withdrawals and introduce spot trading pairs. The move, outlined in a <a href="https://www.okx.com/learn/okx-granted-vasp-license-in-dubai" rel="noopener noreferrer nofollow">blog post</a> published by the company, comes months after the subsidiary <a href="https://coinnesslive.page.link/z9Rt5Tc5ZmzcBbNq9" rel="noopener noreferrer nofollow">received</a> a preparatory license from VARA, underlining its commitment to complying with regulatory standards and expanding in the Middle East.Rifad Mahasneh, the general manager for the MENA Region at OKX, expressed optimism about the region’s potential, stating:“The MENA region holds immense potential to become a hub of excellence for Web3 and virtual assets. We eagerly anticipate the chance to further enhance the already flourishing ecosystem throughout the region.”<h2 id="header-1">Global hub</h2>This strategic move aligns with the United Arab Emirates’ (UAE) goal to establish itself as a global hub for the cryptocurrency industry. VARA, formed in March 2022, was tasked with regulating the emerging virtual asset sector in Dubai. The regulatory framework gained momentum when Sheikh Mohammed bin Rashid Al Maktoum, Dubai’s prime minister and ruler, approved a new virtual assets law in March 2022, providing a legal foundation for the crypto industry in the city.Dubai’s proactive stance towards regulating the cryptocurrency industry has attracted several major players, including Crypto.com, Ripple, Binance and Bybit, all securing crypto licenses from Dubai’s regulator. OKX Middle East joins the likes of TOKO FZE and Trek Labs Ltd FZE in obtaining a license for exchange services.Tim Byun, the Global Head of Government Relations at OKX, emphasized the significance of this license in the company’s journey towards a trustless system.“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,” he stated.Byun expressed excitement about contributing to the development of Dubai’s crypto and Web3 ecosystem, highlighting the importance of the market.It’s noteworthy that OKX, already regulated in the Bahamas, currently restricts customers from the United States due to regulatory issues. The expansion into the Middle East represents a strategic move for OKX to tap into the growing crypto market in the region and aligns with the broader trend of cryptocurrency exchanges expanding their global footprint.

OKX expands Middle East presence through Dubai license approval

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