Dubai’s Virtual Assets Regulatory Authority (VARA) issued a virtual asset service provider (VASP) license to the OKX Dubai subsidiary.
Despite receiving the license, OKX emphasized that the organization would maintain a “non-operational” status until it could satisfy the regulatory obligations.
OKX’s general manager for the Middle East and North Africa region, Rifad Mahasneh, told Cointelegraph that the organization is nearing completion of the necessary paperwork and anticipates that the license will be operational within a few months.
OKX Middle East will have the capacity to provide regulated VASP services, such as spot and fiat trading, AED deposits and withdrawals, and spot trading pairs, once it becomes operational.
The services, according to Mahasneh, will be accessible to both institutional and retail clients.
Prime minister and governor of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, ratified a new virtual assets law in March 2022, establishing a legal framework for cryptocurrencies in Dubai.
An exception is the Dubai International Financial Centre, where the monarch granted VARA enforcement authority over its special development and free zones.
Mahasneh commended the efficient facilitation of the license application procedure at VARA. The executive stated that the regulator’s oversight of the local virtual assets industry illustrated its efficacy.
In addition, Mahasneh considers the OKX and VARA partnership to illustrate the significance of clearly defined regulations in fostering “responsible growth” in the cryptocurrency industry.
