In a historic move, the global blockchain technology company OK x VARA-licensed cryptocurrency exchange has launched in Dubai, United Arab Emirates (UAE). This development marks a significant milestone as OKX becomes the first global cryptocurrency exchange to serve retail and institutional clients in the UAE, providing them with access to a variety of digital asset trading options. The launch of OKX in Dubai is set to boost the virtual assets market in the region.
Securing a UAE License: A Collaborative Process
OKX’s journey to establishing a presence in the UAE has not been without challenges, but the company’s commitment to regulatory compliance and transparency has paid off. Rivad Mahasneh, OKX’s General Manager in the Middle East and North Africa (MENA) region, explained that the process of obtaining the necessary license from Dubai’s Virtual Assets Regulatory Authority (VARA) was a collaborative process.
“It took a fair amount of time to get the products approved by VARA, and it was a collaborative process,” Mahasneh said. “We have learned from the UAE cryptocurrency regulations and are taking these lessons to other jurisdictions where we apply for licenses, and we are also learning from other jurisdictions because not all systems are the same, and each system strengthens us.”
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Providing a local and diverse trading experience
The launch of OKX in the UAE is a testament to the company’s strategy to establish a strong local presence in key markets. The platform now boasts an impressive selection of over 280 cryptocurrencies and 480 trading pairs, including AED trading pairs such as BTC/AED, ETH/AED and USDT/AED. Users can easily buy USDT in UAE using the dirham-denominated order book.
Localizing trading options is a huge advantage for UAE residents, as it simplifies the process of accessing digital assets and removes the complexities and additional fees often associated with foreign currency transfers. Integration with local bank accounts allows seamless deposits and withdrawals in AED.
“Trading pairs in the UAE dirham is a key feature for us,” Mahasneh stressed. “It simplifies access to digital assets for users in the UAE, and removes the complexities and additional fees often associated with foreign currencies.”
Related reading: UAE residents can trade cryptocurrencies directly through bank accounts
Catering to individual and institutional investors
The launch of OKX in the UAE caters to the needs of both retail and alternative institutional investors, offering a range of services tailored to their specific needs. Retail investors can access spot trading, quick buy and sell options, and on-chain profit products, while qualified and institutional investors can also participate in derivatives trading.
To qualify to trade financial derivatives, individual investors must pass a knowledge test, complete a suitability assessment, and provide evidence of having at least AED 500,000 of liquid assets. Institutional investors, on the other hand, must meet additional Know Your Customer (KYC) requirements and show specific financial limits.
Promoting financial inclusion and accessibility
One of OKX’s primary goals is to encourage financial innovation, and the Dubai launch is an important step towards achieving this goal. By offering local currency trading and an easy-to-use platform, the exchange aims to make cryptocurrencies accessible to a diverse population, including those who may have previously been hesitant to venture into the digital asset space.
“Dubai’s demographics are diverse, with people from all walks of life looking for innovative ways to secure their financial future,” Mahasneh explained. By making our platform available to more people, we hope to bridge the gap in financial inclusion.”
Partner with local enterprises and drive Blockchain adoption
OKX’s presence in Dubai extends beyond just providing trading services. The company actively collaborates with local enterprises, startups and government agencies to create a thriving ecosystem that supports businesses and individuals.
“We see Dubai as a gateway to the broader Middle East for the adoption of blockchain technology and cryptocurrencies,” Mahasneh said. “We collaborate with local institutions, startups and government agencies to create a thriving cryptocurrency ecosystem that supports businesses and individuals alike.”
These partnerships aim to promote innovation, knowledge sharing and broader adoption of blockchain technology in the UAE. OKX is also committed to educating its users about cryptocurrency trading and blockchain technology, recognizing the importance of empowering investors with the necessary knowledge.
Ensuring security and transparency
Given the inherent risks associated with digital assets, OKX has placed a strong emphasis on security and transparency. The platform applies advanced protocols to protect user assets and regularly publishes proof of reserves to prove its liquidity and full backing of customer funds.
“Security is our first priority,” Mahasneh said. “We regularly publish proof of our reserves to show that we have the liquidity to back users’ funds. This is not just about regulation, it is about building trust with our users.”
Regulatory landscape and role of VARA
The launch of OKX in Dubai was made possible thanks to the supportive regulatory framework established by the UAE government, particularly through the Dubai Virtual Assets Regulatory Authority (VARA). VARA has played a crucial role in fostering a secure and innovative environment for crypto businesses to thrive.
“We are pleased to receive full operational regulatory approval from VARA,” Mahasneh said. “Their approach to regulation is comprehensive yet facilitative, ensuring that innovation flourishes without compromising safety and security.”
The UAE’s progressive stance on digital assets has been a big draw for OKX and other cryptocurrency companies. By providing a clear regulatory path, Dubai has positioned itself as a global hub for virtual assets, attracting international talent and investment. The DIFC has also played a major role in supporting the growth of the cryptocurrency industry in the region.
Expanding presence across the MENA region
While the initial focus is on the UAE market, OKX has its sights set on expanding its presence across the Middle East and North Africa (MENA) region. Mahasneh noted that the company is always on the radar of potential opportunities in other countries in the Middle East and North Africa region, depending on the size of the markets and their regulatory environment.
“Our focus is on the UAE at the moment, but we are always exploring possibilities in other countries in the MENA region,” Al Mahasneh said. “We will continue to evaluate the market potential and regulatory landscape in the region as we plan our future expansion.”
Strengthening the collaborative ecosystem
OKX’s vision for the UAE extends beyond just providing trading services. The company aims to create a comprehensive ecosystem that includes not only commerce, but also the critical infrastructure and support services needed for broader adoption of digital assets.
“You don’t have to look to the future to see Dubai as a cryptocurrency hub, it already is,” Mahasneh said. “In the area around our office alone, there are dozens of companies working in this space, from exchanges to infrastructure providers. The ecosystem is growing every day, and we are proud to be part of this growth.
OKX is actively encouraging other companies in the cryptocurrency sector to relocate to Dubai, with the aim of fostering a collaborative and competitive environment that pushes the boundaries of blockchain technology.
Economic impact and job creation
The launch of OKX in Dubai is expected to have a positive economic impact, especially in terms of job creation and new business opportunities. As the company expands its presence in the UAE, the demand for talent in the cryptocurrency space is on the rise.
“We have seen a lot of interest from professionals globally who want to move to Dubai because of the opportunities available here,” Mahasneh noted. “We have hired locals for key functions such as compliance, legal and finance, and we are looking to expand into more innovative areas such as software development.”
The influx of international talent and growth of the blockchain sector in Dubai is expected to stimulate the local economy, supporting related businesses such as custody, infrastructure and tokenization services.
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