Dubai’s VARA Approves OKX ‘Preparatory’ License as Part of Exchange’s Expansion plans

Updated: 16 June 2023

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OKX, a leading company in Web3 technology and the second-largest cryptocurrency exchange by trading volume has revealed that OKX Middle East Fintech FZE (OKX Middle East) has received a Preparatory License for a Minimal Viable Product (MVP) from the Dubai Virtual Assets Regulatory Authority (VARA).

OKX’s Expansion to Middle East

In the June 15 statement, OKX asserted that the United Arab Emirates (UAE) holds significant strategic value for OKX on both a global and regional level. In recognition of this, the company intends to expand its operations through OKX Middle East. As part of its expansion strategy, the crypto company recently launched a new office at the Dubai World Trade Center.

The company further aims to bolster its Dubai team by hiring local talent and senior management, with plans to increase the staff count to 30 individuals. OKX emphasized its commitment to extend its successful brand partnerships, which have garnered substantial attention in the UAE market. The company intends to engage customers and fans through various activations and activities tailored to their preferences.

MVP Preparatory License Empowers OKK to Commence Operations

According to the statement, the issuance of the MVP preparatory license empowers OKX Middle East to fulfill all the necessary pre-conditions required to conduct MVP operations under the VARA regime. Once operational, OKX Middle East will be able to offer a comprehensive suite of regulated virtual asset activities, including spot, derivatives, and fiat services.

OKX has received an MVP Preparatory License from Dubai’s VARA, marking a pivotal step in our strategic UAE expansion. 🎉

New hires, new office & extended partnerships—we’re proud to shape the Web3 & crypto landscape in the Middle East. 🤝

Learn more: https://t.co/9Akhh88JP4 pic.twitter.com/HmHd8CMq4y

— OKX (@okx) June 15, 2023

Institutional and qualified retail customers will benefit from services such as USD and AED deposits and withdrawals, as well as spot-pairs trading.

In July 2022, VARA awarded OKX a provisional operational license, permitting the company to provide its range of products and services within the region.

Lennix Lai, OKX Global Chief Commercial Officer, expressed his enthusiasm regarding the MVP preparatory license, stating:

“We’re thrilled to receive the MVP preparatory license from VARA. Regulated entities are the future of digital assets and capital markets, and Dubai and VARA have succeeded in creating a unique environment where VASPs can thrive.”

Lai emphasized the company’s focus on hiring local staff and senior management, highlighting the immense potential of the Middle East and North Africa (MENA) region as a center of excellence for Web3 and virtual assets.

Tim Byun, OKX Global Head of Government Relations, commended Dubai and VARA for their pioneering role in crypto regulation. By establishing a comprehensive and robust framework for virtual assets and Web3, Dubai and VARA have become global leaders in this space.

Obtaining a license in Dubai is a crucial component of OKX’s regulatory compliance strategy, ensuring the highest standards of security, transparency, compliance, and consumer protection.

Byun further emphasized that VARA’s framework aligns with well-established regulatory principles for traditional financial services. He said:

“This provides confidence to operators and customers alike, and positions the crypto and Web3 industry in MENA for increased participation and overall growth in the near and long term.”

The UAE government created a new regulator to oversee the cryptocurrency industry in Dubai. The VARA was established in March 2023 and is responsible for protecting investors and creating international standards for governance within the industry.

VARA will have authority over Dubai’s special development and free zone areas, but not the Dubai International Financial Centre.

OKX Middle East’s receipt of the MVP Preparatory license from VARA marks an important milestone in the company’s expansion into the UAE. By establishing a new office in Dubai and increasing its local workforce, OKX aims to capitalize on the UAE’s strategic position as a global and regional business hub.

With VARA’s comprehensive regulatory framework and emphasis on compliance and security, OKX is well-positioned to offer a range of regulated virtual asset services to institutional and retail customers.