Crypto exchange OKX secures VASP licence from Dubai’s VARA

When operational, the licence will enable the company to provide spot services and spot-pairs services to qualified retail clients

OKX Middle East has received a virtual asset service provider (VASP) licence from Dubai’s Virtual Assets Regulatory Authority (VARA) that will allow the crypto exchange platform to offer crypto services to retail clients.

The licence remains non-operational until OKX Middle East, a Dubai-based subsidiary of OKX, fully satisfies all remaining conditions and select localisation requirements defined by VARA.

When operational, the licence will enable the company to provide spot services and spot-pairs services to qualified retail clients, as well as institutional customers.

“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,” said Rifad Mahasneh, OKX general manager, MENA.

“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.”

OKX Middle East is the latest crypto exchange platform to be granted a licence for exchange services after TOKO FZE and Trek Labs Ltd. Binance, the world’s largest cryptocurrency exchange, also secured a licence to conduct some operations in Dubai in 2022.

VARA sanitises Dubai’s crypto credentials

VARA said 18 VASPs – commercially licenced on the mainland under Dubai’s Department of Economy and Tourism (DET) – were fined last November for failing to comply with the regulator’s directives and guidance.

Last July, Dubai authorities suspended BitOasis’ minimum viable product operational licence (MVP) after the crypto exchange platform failed to meet the mandated conditions set forth by the regulator.

VARA said it was exercising its authority to supervise and monitor compliance, assure fulfilment of prescribed conditions and impose remedial measures.

The regulator also fined the co-founders of failed crypto hedge fund Three Arrows Capital Dhs10m ($2.7m) – the latest enforcement action against the duo’s new digital-asset exchange OPNX.

Meanwhile, Abu Dhabi is becoming a popular destination for crypto companies seeking eager investors and friendlier regulators, at a time when major markets such as the US are experiencing an absence of both.

Companies such as Copper Technologies, Paxos Trust and eToro Group have turned to Abu Dhabi as a destination for global expansion, securing licenses or establishing parts of their crypto businesses inside the Abu Dhabi Global Market.