February 26, 2024
Blockchain & Cryptocurrency

Dubai Authorities Finally Grant OKX Crypto Exchange Provisional License 

Dubai Authorities Finally Grant OKX Crypto Exchange Provisional License

Dubai’s Virtual Assets Regulatory Authority (VARA) has recently granted OKX a provisional virtual assets license. This license allows OKX to extend its operations to Dubai. Notably, OKX is a Seychelles-based cryptocurrency exchange formerly known as OKEx. The company specializes in facilitating crypto spot and derivatives trading. This approval-in-principle allows OKX to offer more services to investors and financial services providers. Also, the exchange would improve virtual asset research and knowledge sharing in Dubai.

Following the approval, OKX has stated that it is committed to building the necessary infrastructure and team in the UAE. The exchange also said it would proactively participate in the VARA regulatory ecosystem. In addition, the company would also pursue the goal of making Dubai a leading hub for virtual assets. In its statement, the company recognized the status of the MENA region as one of the fastest growing markets in the crypto industry and the position Dubai occupies as a pioneer in the virtual asset industry. OKX added that it is excited to contribute to this sound compliance framework and development.

Notably, with this provisional license, OKX, and other licensed VARA service providers, would be progressively monitored in stages before getting full access to the retail market. Full regulatory compliance is a primary condition of the license. This means that OKX and other licensees must comply entirely with certain rules. These rules include Anti-Money Laundering (AML) and Know Your Customer (KYC) regulation. These companies also have to follow Counter-Terrorist Financing (CTF) measures.

It is not surprising that OKX has shown such strong interest in Dubai’s budding crypto market. The jurisdiction has undoubtedly become a magnet for the global virtual assets industry, given its progressive climate. Expectedly, OKX is not the only crypto company that has identified UAE’s budding digital assets sector. For instance, other top crypto platforms have obtained similar licenses. Some of such companies include Binance, FTC Europe, and Bybit.

The state’s sound regulatory framework undoubtedly drives the attraction of the crypto industry to Dubai and the UAE. For instance, UAE was the first jurisdiction globally to set up a specialized regulator for the virtual asset industry. Similarly, the country has established a law to govern cryptocurrency activities. This development was announced in March 2022 by Sheikh Mohammed Bin Rashid, the ruler of Dubai.

This law creates a legal framework for crypto, intending to design much-warranted international standards for industry governance. The law also establishes and empowers the Dubai Virtual Asset Regulatory Authority (VARA). VARA now can grant licenses to companies like OKX for operation in Dubai. Besides granting operational licenses, VARA also has enforcement powers in Dubai’s special and free zones. In addition, VARA has the authorization to register Dubai residents who intend to engage in any crypto-related activities.

OKX’s foray into Dubai’s crypto market is a testament to the region’s proactive regulatory efforts. Moreover, Dubai’s creation of a crypto law and regulator makes for certainty. This is surely an ideal quality in an industry mainly filled with uncertainty in most jurisdictions worldwide.

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Last Updated on 3 months by newseditor

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