Dubai’s VARA Grants Conditional Crypto License To OKX Subsidiary

• OKX’s Dubai subsidiary secures VASP license from VARA, paving the way for regulated exchange services.
• OKX remains non-operational until it fulfills regulatory requirements; and anticipates becoming fully operational in the next few months.

OKX’s subsidiary in Dubai has been granted a virtual asset service provider (VASP) license by Dubai’s Virtual Assets Regulatory Authority (VARA) for exchange services. While the approval marks a significant step, OKX has clarified that it will remain in a “non-operational” state until it fulfils the conditions set by the regulator.

Navigating Regulatory Compliance: OKX Awaits Operational Status

Rifad Mahasneh, General Manager for the Middle East and North Africa at OKX, shared insights, emphasizing that OKX Middle East is actively working to meet the regulatory requirements outlined by VARA. Mahasneh anticipates that the platform will achieve operational status within the next few months, aligning with the stipulations set forth by the regulatory authority.

Once operational, OKX Middle East is poised to offer a range of regulated VASP services, encompassing “spot and fiat trading services, AED deposits and withdrawals, and spot trading pairs.” These services will be accessible to both retail and institutional users, marking a strategic expansion of OKX’s offerings in the region.

Also Read: A Comprehensive Guide To Buying Bitcoin in Dubai

Dubai’s Proactive Regulatory Framework: A Milestone in Crypto Legislation

The grant of the VASP license follows Dubai’s Prime Minister and Ruler, Sheikh Mohammed bin Rashid Al Maktoum’s approval of a new virtual assets law in March 2022. This legislation established a robust legal framework for the crypto industry in Dubai. VARA, with enforcement powers in designated development and free zones (excluding the Dubai International Financial Centre), was appointed to oversee and regulate the local virtual assets sector.

Mahasneh commended VARA’s streamlined license application process, emphasizing its efficiency in facilitating the regulatory procedure. The collaboration between OKX and VARA, according to Mahasneh, underscores the significance of clearly defined regulations in fostering “responsible growth” within the dynamic realm of cryptocurrency.