OKX initially planned to expand into the Middle East.
OKX aims to hire 30 more players with MVP clearance. OKX confirmed a World Trade Center regional office.
OKX Enters Dubai
In July 2022, Middle Eastern market regulators granted OKX a temporary operating license to offer digital assets, products, and services.
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Head of government relations Tim Byun stated that OKX needed the Dubai license for worldwide regulatory compliance. Byun said crypto businesses must follow VASP rules to deliver secure and transparent services due to market uncertainties. He said crypto assets needed clear restrictions.
In a separate article, OKX global chief commercial officer Lennix Lai said that regulated companies will shape digital assets and capital markets. Lai praised Dubai government and VARA for fostering a welcoming atmosphere for the VASP to grow.
OKX Dubai would hire local and senior management. Lai said the Middle East and North Africa area (MENA) has huge potential to promote Web3 and the crypto industry. OKX wants to expand to the region's vibrant ecology.
OKX Get Dubai Preparatory License
Reflecting on the June 15 announcement, the OKX team argued that the MVP license allowed the crypto firm to comply with Dubai’s specific set of rules. Afterwards, the regulator will officially allow OKX to operate entirely in the region. In their announcement, the OKX team plans to offer a range of crypto products, including spotting services, spot -pairs and other derivatives platforms. Beyond this, the OKX team will offer fiat services, including the US dollar currency and the United Arab Emirates Dirham depository and withdrawal services.
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According to OKX, the crypto exchange plans to seek strategic partnerships in the Middle East to widen its market presence. The OKX team plans to introduce activation and other activities that will increase the brand value in the Arab country.
Scope of VARA Regulations
In March, the regulators in Dubai introduced the Virtual Assets Regulation law that outlines the legal framework for crypto assets. This regulation was drafted to protect the consumer and investors in the crypto space. Additionally, the regulators invested in formulating the bill to ensure the operation of Dubai crypto firms meets global standards. Afterwards, the regulators launched VARA, which outlines the regulatory approach applied by the emirates to supervise the operation of special development zones and free zones in Dubai. The VARA has been tasked with licensing duties and financial control of the financial sector. Since establishing VARA, the regulators have provided a well-detailed procedure to offer specific digital assets and measures to address the market risks.
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Before the entrance of OKX to the Middle East, the crypto exchange had announced plans to exit the Canadian market to pursue suitable markets overseas. In an earlier report, the OKX team confirmed winding down operation in Canada by June 22. The OKX move replicates the action taken by Paxos and Binance to exit Canada due to regulatory pressure. Besides the efforts made by OKX to expand to the global market, the largest crypto exchange by daily trading volume in the US, Coinbase has recently announced plans to enter the UAE market. The Coinbase team lamented that the ongoing regulatory clampdown had compelled the crypto exchange to seek promising opportunities overseas. Recently Coinbase and Binance have been making headlines following the lawsuit filed by the US Securities and Exchange Commission.
