OKX has been offered a license to operate in Dubai. The Minimal Viable Product (MVP) preparatory license was given by the Virtual Assets Regulatory Authority (VARA) in Dubai. OKX received it after one year of being given the “provisional virtual assets license.”
The MVP license will allow OKX to “fulfill all preconditions required to undertake MVP operations within the VARA regime.” Once the licensing process is completed, OKX will not only offer services to retail users but also to institutional customers.
OKX is a global cryptocurrency exchange. Founded in 2017 by Star Xu, it is headquartered in Victoria, Seychelles. OKX is owned by OK Group. It is not currently available to US-based investors. OKX offers a wide range of products and services, including spot trading, derivatives trading, NFT marketplace, and Web3 wallet
Expansion of OKX to Middle East
Tim Byun, OKX Global Head of Government Relations, said that the company is advancing its operations to Dubai because the country has created an enabling environment for digital assets.
“In today’s uncertain market environment, it is of utmost importance for VASPs [virtual asset service providers] to be highly secure, transparent, compliant, and backed by strong, clear regulation.”
Byun explained that “Dubai has a clear, singular regulator with transparent requirements and controls for participants to seek licenses according to their regulated activities.”
He added that using enforcement in the digital assets industry does not support the long-term growth of the market, in comparison with “establishing timely, robust, and clear regulatory frameworks is the key to growing the ecosystem in a safe and sound manner.”
OKX also revealed that in its plan to expand to Dubai, it will hire more staff members to operate the exchange in the Middle East.