OKX granted virtual assets licence to operate in Dubai
Byline: Craig Brogan
Cryptocurrency exchange company, OKX has recently been very busy with global partnerships. Just the other day, OKX signed a deal with English Premier League winners, Man City to sponsor the team’s training kit for the 2022-23 season. They didn’t stop there though – their latest partnership has secured them a provisional license in the United Arab Emirates (UAE).
OKX is a Seychelles-based crypto exchange and derivatives exchange that provides a platform on which people are able to trade a range of instruments such as spot and derivatives. OKX is also ranked as one of the world’s largest cryptocurrency exchanges by trading volume. This giant has recently secured a deal with Dubai to provide investors in the country with certain products and services, following in the footsteps of FTX and Kraken, fellow crypto exchange giants. This is a significant move for OKX when one considers that approximately one-third of the UAE’s population has invested in cryptocurrency.
OKX has successfully acquired a provisional virtual assets license granted to them by the Dubai Virtual Assets Regulatory Authority (VARA). The VARA is the only custodial entity mandated to licence and govern the cryptocurrency sector in Dubai, including all mainland and free zones, excluding the Dubai International Financial Centre. The UAE government has also established VARA in an effort to provide the country with a legal framework for cryptocurrency. This law is focused on protecting investors as well as setting international standards for governance within the cryptocurrency industry.
The provisional license will allow OKX to offer additional services to qualified investors as well as financial services providers in Dubai, UAE. Following this, OKX will also conduct research and encourage knowledge sharing within the VARA regulatory ecosystem. This is due to the fact that OKX has made it known that regulatory compliance is a priority for them as it protects users, something that they place great importance on. OKX takes ethics and regulations seriously and believes they are prudent to ensure user safety.
Government relations officer at OKX, Tim Byun has reported that the compliance framework issued by Dubai’s VARA reflects the UAE’s leadership in nurturing the future generation’s global economy. Byun mentioned that “Dubai is a pioneer when it comes to regulation of the virtual assets sector, and it is swiftly becoming one of the top global hubs for the industry”. He also highlighted that the VARA license will allow businesses to be compliant with certain mandates such as Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF) and Know Your Customer (KYC). OKX intends to offer a wide range of virtual asset products and services with this new venture in Dubai.
Not only will this project benefit OKX and its users, but also Dubai’s local economy. An executive at OKX, Lennix Lai, has expressed that the OKX team is eager to contribute to the local ecosystem in Dubai and to participate in an exchange of ideas that will be beneficial to the crypto sphere. With this in mind, the exchange also plans to set up a regional hub in Dubai in an effort to build its team and infrastructure within the country.
The rise of cryptocurrency in Dubai
The UAE Central Bank hasn’t approved cryptocurrencies as legal tender. However Crypto assets aren’t banned and can be exchanged on crypto exchanges. UAE residents can deposit and exchange cryptocurrency.
Some crypto exchanges are allowed in the financial free zone. The DMCC Crypto Centre promoted cryptography and blockchain technologies in Dubai in May 2021. DMCC includes 100 crypto companies. UAE will have over 1000 crypto firms by 2022, according to DMCC’s executive chairman.
Dubai has made a conscious effort to work towards the adoption of cryptocurrency, more and more people are latching on to crypto automation in the country through using sophisticated trading applications like Bitcoin Prime. Consequently, OKX encourages crypto entities to partner with them to achieve a mass adoption of crypto in the country and worldwide.
This latest deal between OKX and Dubai is just one example of the significant collaborations entered into by OKX. With big names like Manchester City, OKX is attracting a lot of attention in the crypto sphere, and it seems this is only the beginning of successful partnerships for the exchange.
