OKX Receives Preparatory License For Dubai Expansion

OKX, a leading cryptocurrency exchange, has received a Minimal Viable Product (MVP) preparatory license from the Dubai Virtual Assets Regulatory Authority (VARA) on June 15, marking a significant step toward expanding its services in the United Arab Emirates (UAE). According to a company statement, this license allows OKX to offer spot, derivatives, and fiat services, including deposits, withdrawals, and spot pairs in US dollars and United Arab Emirates Dirham (AED), to institutional and qualified retail customers in Dubai.

OKX’s Preparatory License

Highlighting the importance of the UAE as a strategic hub, OKX plans to operate from its new office in the Dubai World Trade Center. In an interview with Forkast’s Jenny Ortiz, OKX Chief Commercial Officer Lennix Lai shed light on the significance of the preparatory license and the company’s future plans in Dubai and the UAE. Lai explained that the MVP license is a prerequisite under VARA, allowing OKX to promote its brand in the region, establish banking relationships, and conduct investor education. He expressed confidence that OKX would be fully operational in the UAE within the year, pending approval for the full license.

Once granted the operating license, OKX will be authorized to offer spot trading services and engage with banks to facilitate AED tradable pairs. The exchange aims to integrate the traditional banking system, providing a bridge between cryptocurrency and traditional finance while ensuring compliance with robust KYC procedures. In light of its expansion, OKX has already hired personnel and established an office in Dubai. Looking ahead, Lai mentioned plans to potentially double the team size to accommodate growth and position Dubai as the virtual asset hub for the UAE region, similar to the models seen in Hong Kong and Singapore.

Regarding the decision to apply for a license in Dubai, Lai emphasized that governments and regulators are keen on protecting their citizens in the realm of cryptocurrencies. He praised VARA for understanding the need to regulate the crypto industry and creating a separate license specifically for virtual assets, distinguishing them from traditional assets like equities and bonds. Lai suggested that other jurisdictions could learn from Dubai’s approach to crypto regulation, which tailors a regulatory regime specifically for the industry rather than treating cryptocurrencies as commodities or securities. This tailored approach acknowledges the unique nature of cryptocurrencies as frontier assets.