- Dubai has emerged as one of the most favored cities for crypto firms.
- OKX recently announced that it had received approval in the region.
- The company will offer several regional services when its license becomes operational.
Like any other industry, favorable regulations and taxes are increasingly influencing the citing of crypto businesses, with Dubai emerging as one of the most sought-after locations.
As the city continues to work towards becoming a crypto hub, several firms, including OKX, one of the world’s largest crypto exchanges by volume, have declared interest in expanding their business to the MENA region. OKX recently disclosed that its efforts had yielded results, as it has obtained a “preparatory license” to operate in the region.
OKX Opens Office In Dubai World Trade Center With New License
In a press release on Thursday, June 15, OKX’s Middle East arm announced that it had obtained a Minimal Viable Product (MVP) Preparatory license from the Dubai Virtual Assets Regulatory Authority (VARA).
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As part of the move, the firm disclosed that it had set up shop in Dubai’s World Trade Center, with plans to expand its staff to 30, prioritizing local hires.
The preparatory license notably allows the firm to start on the path of becoming fully compliant with the VARA rules. OKX disclosed that once its license is operational, it will offer spot, derivatives, and fiat services, including supporting USD and AED deposits and withdrawals.
Commenting on the move, OKX Global Head of Government Relations Tim Byun hailed Dubai for its “timely, comprehensive and built from-the-ground-up” crypto regulatory framework.
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"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," he added.
OKX notably joins the likes of Binance and Bybit to receive approval in the region, with the latter choosing to move its headquarters to the city.
On the Flipside
- OKX has also revealed plans to set up shop in Paris as Europe opens up to crypto businesses with the passing of the Markets in Crypto-Assets (MiCA) bill.
- Dubai does not allow for trading in privacy coins like Zcash.
Why This Matters
OKX’s Dubai push further highlights the appeal of the United Arab Emirates to crypto firms.
Read this to learn more about OKX’s European push:
OKX Stakes Europe Ambitions with Paris Base
See why the drop in Cardano’s TVL does not tell the full story:
Cardano DeFi Perseveres Despite TVL Slump on SEC Security Listing
