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January 16, 2024 - OKX Middle East Fintech FZE, the Dubai subsidiary of prominent cryptocurrency exchange and Web3 technology company OKX, today announced the acquisition of a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA) for VA Exchange Services. The license is currently non-operational and contingent upon the fulfilment of specific conditions and localisation requirements set by VARA. Once these prerequisites are met and regulatory re-verification and approval are obtained, OKX Middle East will be able to initiate its operations.
The operationalisation of this VASP license will enable OKX Middle East to offer an array of regulated virtual assets activities, including spot services and spot-pairs, to institutional and qualified retail customers through the OKX App and the OKX.com exchange.
OKX is committed to maintaining high standards of investor and market protection. Trading on a regulated platform under VARA's guidance in Dubai will provide users with enhanced consumer protection levels.
Rifad Mahasneh, OKX General Manager for the MENA Region
Rifad Mahasneh, OKX General Manager for the MENA Region, commented on the development: "The future of digital assets and capital markets lies in the hands of regulated entities, and Dubai, along with VARA, has succeeded in establishing a distinctive environment that fosters the growth of Virtual Asset Service Providers. 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."
Tim Byun, OKX Global Head of Government Relations, also shared his views: "Dubai and VARA are world leaders in crypto regulation by establishing the most timely, comprehensive and built from-the-ground-up framework for virtual assets and Web3. 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. Dubai is an important market for us, and we're excited to build strong relationships with our users and contribute to the development of its crypto and Web3 ecosystem."
Established in March 2022, following the effect of Law No.4 of 2022, VARA is the competent entity in charge of regulating, supervising, and overseeing VAs and VA Activities in all zones across the Emirate of Dubai, including Special Development Zones and Free Zones but excluding the Dubai International Financial Centre. VARA plays a central role in creating Dubai's advanced legal framework to protect investors and establish international standards for Virtual Asset industry governance, while supporting the vision for a borderless economy.
