OKX Gets Dubai Preliminary License
OKX states, "The UAE is an important strategic growth and business base," and the company intends to expand its operations in the Middle East.
As part of the initiative, the company announced that it will establish a new office in the Dubai World Trade Center and increase its staff in Dubai to 30 employees, with a particular emphasis on local hires and senior management. We will also establish partnerships with UAE-based businesses.
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The preliminary license obtained this time signifies that OKX has met the requirements for managing the minimum product in accordance with VARA regulations.
OKX Middle East, the Middle East division of OKX, will offer institutional investors and institutional investors a variety of cryptocurrency services, including deposits and withdrawals in U.S. dollars and the UAE legal currency dirham, spot trading, and derivatives, after obtaining a full operating license. provide access to qualified users.
What does the Virtual Currency Regulatory Authority (VARA) of Dubai do?
Initiated in 2022. A regulatory body responsible for regulating and governing cryptocurrencies and cryptocurrency service providers in the Emirate of Dubai. As it has its own regulatory authority, the Dubai International Financial Center is exempt from VARA's regulation and supervision.
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OKX's Director of Global Government Relations, Tim Byung, commented:
OKX's global regulatory conformance strategy also requires that a license be obtained in Dubai. In today's volatile market environment, cryptocurrency service providers must be secure, transparent, and compliant. It is imperative that this be supported by explicit regulations.
In accordance with VARA's exhaustive regulatory framework, all operators must meet stringent compliance, risk management, security, and consumer protection requirements in light of existing financial services principles. not.
OKX announced in March that it would establish a local subsidiary and apply for a license in Hong Kong, which promotes policies that support the cryptocurrency industry.
OKX will petition for a virtual currency license in Hong Kong, a major exchange
Clarifying Crypto Regulations in Dubai
UAE actively promotes cryptocurrencies and Web3. Binance, Bybit, and Crypto.com are already licensed in Dubai.
In February, VARA published cryptocurrency-related regulatory guidelines. It outlines the fundamental principles and objectives associated with the issuance of virtual currency, the licensing system, the prevention of money laundering and the financing of terrorism, and marketing and promotion.
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It also prohibited the issuance of highly anonymous currency and all business activities associated with it.
Dubai regulator announces regulatory policy regarding virtual currency prohibition of anonymous currencies
In May, the chief executive officer of the largest cryptocurrency exchange in the United States, Coinbase, also visited the United Arab Emirates to assess the local regulatory framework. Additionally, he stated that explicit rules have been published, he is optimistic about the cryptocurrency industry, and investor protection is being strengthened.
"This region has the potential to become a strategic hub for Coinbase," said a Coinbase executive at the time, Nana Murugesan.
The U.S. Securities and Exchange Commission (SEC) has been criticized for continuing to take legal enforcement actions without providing clear regulatory guidelines for the cryptocurrency industry in the United States.
Under these conditions, some U.S. cryptocurrency companies see potential in international markets.
Coinbase's CEO and other executives from the United States travel to the United Arab Emirates, where they highly value virtual currency regulations.
