OKX Middle East Secures MVP Preparatory License from VARA in Dubai

OKX, the second-largest crypto exchange by trading volume and a leading Web3 technology company, announced that its subsidiary in the Middle East, OKX Middle East Fintech FZE (OKX Middle East), has obtained the Minimal Viable Product (MVP) Preparatory license from the Dubai Virtual Assets Regulatory Authority (VARA).

Once licensed for operation, OKX Middle East will be able to extend its approved suite of regulated virtual assets activities and will provide spot, derivatives, and fiat services, including USD and AED deposits, withdrawals and spot-pairs, to institutional and qualified retail customers.

"We're thrilled to receive the MVP preparatory licence from VARA. Regulated entities are the future of digital assets and capital markets and Dubai and VARA have succeeded in creating a unique environment where VASPs can thrive," said Lennix Lai, Global Chief Commercial Officer at OKX. "With the expansion into a new office this year, we are focused on hiring local staff and senior management. The MENA region has incredible potential as a centre of excellence for Web3 and virtual assets, we look forward to the opportunity to expand the already growing ecosystem across the region."

"Dubai and VARA are world leaders in crypto regulation by establishing the most timely, comprehensive and built from-the-ground-up framework for virtual assets and Web3. Licensing in Dubai is a critical element of OKX's global regulatory compliance strategy," said Tim Byun, Global Head of Government Relations at OKX. "In today's uncertain market environment, it's of the utmost importance for VASPs to be highly secure, transparent, compliant and backed by strong, clear regulation. Under VARA's comprehensive framework, all operators must meet high standards of compliance, risk management, security and consumer protection, benchmarked against well-known existing regulatory principles for traditional financial services. This provides confidence to operators and customers alike, and positions the crypto and Web3 industry in MENA for increased participation and overall growth in the near and long term."

The UAE serves as a critical location for OKX's global and regional growth and business activities. To support the expansion of OKX Middle East, the company has recently opened a new office at Dubai World Trade Center. OKX plans to grow its Dubai-based team to 30 employees with a focus on local hires and senior management.

OKX has been actively expanding its business footprint. Last month, the company applied for registration with French regultor​, Autorité des marchés financiers (AMF), to offer regulated digital asset services in the country, thereby expanding its presence in Europe. In March, OKX established a Hong Kong branch and filed an application for a virtual asset license after Hong Kong announced plans to ease some of its ban on cryptocurrency purchases​.