In a landmark move, the global on-chain technology company OKX launched its VARA-licensed cryptocurrency exchange in Dubai, United Arab Emirates (UAE). This development marks a significant milestone as OKX becomes the first global crypto exchange to serve both retail and institutional clients in the UAE, providing them with access to a diverse range of digital asset trading options. The launch of OKX in Dubai is set to boost the virtual asset market in the region.
Securing the UAE License: A Collaborative Process
OKX’s journey to establishing a presence in the UAE was not without its challenges, but the company’s commitment to regulatory compliance and transparency paid off. Rifad Mahasneh, the General Manager of OKX Middle East and North Africa (MENA) region, explained that the process of obtaining the necessary license from the Dubai Virtual Asset Regulatory Authority (VARA) was a collaborative one.
“It took the right amount of time to get the products approved by VARA, and it was a collaborative process,” Mahasneh said. “We have learned from the UAE crypto regulations and take these learnings to other jurisdictions where we apply for licenses, as we also learn from other jurisdictions because not all regimes are the same, and each regime enhances us.”
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Offering a Localized and Diverse Trading Experience
OKX’s UAE launch is a testament to the company’s strategy of establishing 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.
This localization of trading options is a significant advantage for UAE residents, as it simplifies the process of accessing digital assets and eliminates the complexities and additional fees often associated with foreign currency conversions. The integration with local bank accounts allows for seamless AED deposits and AED withdrawals.
“The AED trading pairs are a key feature for us,” Mahasneh emphasized. “It simplifies access to digital assets for users in the UAE, removing the complexities and extra fees often associated with foreign currencies.”
Related Read: UAE Residents Can Trade Crypto Directly with Bank Accounts
Catering to Retail and Institutional Investors
OKX’s UAE launch caters to both alternative retail and institutional investors, offering a range of services tailored to their specific needs. Retail investors can access spot trading, express buy and sell options, and on-chain earning products, while qualified and institutional investors can also participate in derivatives trading.
To qualify for derivatives trading, individual investors must pass a knowledge test, complete a suitability assessment, and provide proof of having at least AED 500,000 in liquid assets. Institutional investors, on the other hand, must meet additional Know Your Customer (KYC) requirements and demonstrate specific financial thresholds.
Enhancing Financial Inclusion and Accessibility
One of OKX’s core goals is to promote financial innovation, and the Dubai launch is a significant step towards achieving this objective. By offering local currency trading and a user-friendly platform, the exchange aims to make crypto more accessible to a diverse population, including those who may have previously been hesitant to venture into the digital asset space.
“Dubai’s demographic is diverse, with people from all walks of life looking for innovative ways to secure their financial future,” Mahasneh explained. “By making our platform accessible to more people, we hope to bridge the gap in financial inclusion.”
Partnering with Local Institutions and Driving Blockchain Adoption
OKX’s presence in Dubai extends beyond just offering trading services. The company is actively collaborating with local institutions, startups, and government bodies to create a thriving blockchain ecosystem that supports both businesses and individuals.
“We see Dubai as the gateway to the wider Middle East for blockchain and crypto adoption,” Mahasneh said. “We’re partnering with local institutions, startups, and government bodies to create a thriving crypto ecosystem that supports both businesses and individuals.”
These partnerships aim to foster innovation, knowledge sharing, and the broader adoption of blockchain technology in the UAE. OKX is also committed to educating its users about crypto trading and blockchain, 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 implements advanced protocols to safeguard user assets and regularly publishes Proof of Reserves to demonstrate its liquidity and the full backing of customer funds.
“Security is our number one priority,” Mahasneh stated. “We regularly publish our Proof of Reserves to show that we have the liquidity to back user funds. This is about more than regulation—it’s about building trust with our users.”
Regulatory Landscape and VARA’s Role
OKX’s launch in Dubai was made possible by the supportive regulatory framework established by the UAE government, particularly through the Dubai Virtual Asset Regulatory Authority (VARA). VARA has played a crucial role in fostering a secure and innovative environment for crypto businesses to thrive.
“We were pleased to receive full operational regulatory approval from VARA,” Mahasneh said. “Their approach to regulation is thorough yet facilitative, ensuring innovation can thrive without compromising safety and security.”
The UAE’s forward-thinking stance on digital assets has been a significant draw for OKX and other crypto companies. By providing a clear regulatory path, Dubai has positioned itself as a global hub for virtual assets, attracting international talent and investment. The Dubai International Financial Centre has also played a key role in supporting the growth of the crypto industry in the region.
Expanding Presence Across the MENA Region
While the initial focus is on the UAE market live, OKX has its sights set on expanding its presence across the broader Middle East and North Africa (MENA) region. Mahasneh noted that the company is always on the radar for potential opportunities in other MENA countries, depending on the size of the markets and their regulatory environment.
“Our focus is on the UAE for now, but we are always exploring possibilities in other MENA countries,” Mahasneh said. “We will continue to assess the market potential and regulatory landscape in the region as we plan our future expansion.”
Fostering a Collaborative Ecosystem
OKX’s vision for the UAE extends beyond simply offering trading services. The company aims to create a comprehensive ecosystem that includes not only trading but also vital infrastructure and support services necessary for the broader adoption of digital assets.
“You don’t have to look into the future to see Dubai as a hub for crypto—it already is,” Mahasneh said. “In the area surrounding our office alone, there are dozens of firms working in this space, from exchanges to infrastructure providers. The ecosystem is growing daily, and we’re proud to be part of that growth.”
OKX is actively encouraging other firms in the crypto sector to relocate to Dubai, with the goal 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, particularly in terms of job creation and new business opportunities. As the company expands its presence in the UAE, the demand for talent in the crypto space is on the rise.
“We’ve seen a lot of interest from professionals globally who want to relocate to Dubai because of the opportunities here,” Mahasneh noted. “We’ve hired locally for key functions like compliance, legal, and finance, and we’re looking to expand into more innovative areas like software development.”
The influx of international talent and the growth of the blockchain sector in Dubai are expected to stimulate the local economy, supporting related businesses such as custody, infrastructure, and tokenization services.
