- OKX’s Dubai subsidiary has secured a VASP license from VARA, paving the way for regulated exchange services.
- OKX will not operate until regulatory requirements are met. It is expected to be fully operational within the next few months.
OKX’s Dubai subsidiary has received a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Asset Regulatory Authority (VARA) for exchange services. Although this approval is an important step forward, great It said it would remain ‘non-operational’ until conditions set by regulators were met.
Navigating Compliance: OKX Waits for Operational Status
Sharing his insights, Rifad Mahasneh, General Manager, Middle East and North Africa at OKX, emphasized that OKX Middle East is actively working to meet the regulatory requirements set out by VARA. Mahasneh expects the platform to achieve operational status within the next few months, subject to regulations set by regulators.
Once operational, OKX Middle East is prepared to offer a range of regulated VASP services, including “spot and fiat trading services, AED deposits and withdrawals, and spot trading pairs.” These services will be available to both retail and institutional users, marking a strategic expansion of OKX’s offerings in the region.
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Dubai’s Proactive Regulatory Framework: A Milestone in Cryptocurrency Legislation
The granting of the VASP license follows the approval of a new virtual assets law in March 2022 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Ruler of Dubai. The bill establishes a strong legal framework for the cryptocurrency industry in Dubai. VARA, which has enforcement powers in designated development and free zones (excluding the Dubai International Financial Centre), has been appointed to oversee and regulate the local virtual asset sector.
Mahasneh praised VARA’s streamlined license application process, emphasizing its efficiency in expediting the regulatory process. According to Mahasneh, the collaboration between OKX and VARA highlights the importance of clearly defined regulations in promoting “responsible growth” within the dynamic realm of cryptocurrencies.