By
Chimamanda U. Martha
April 19th, 2024
After bagging the VARA license, OKX will be looking to create a global crypto-asset hub in the city of Dubai.
Crypto exchange OKX has now gotten a provisional nod of approval to operate as a virtual assets platform in Dubai. The license was issued by the Dubai Virtual Assets Regulatory Authority (VARA). And now, OKX may begin offering virtual assets services to investors based in the United Arab Emirates.
Crypto Exchange OKX to Create a Crypto Hub
After bagging the VARA license, OKX will be looking to create a global crypto-asset hub in the city of Dubai. This is as the company intensifies efforts to attract other crypto firms from around the world.
Also, in line with its expansion ambitions, OKX announced its plans to hire 100 workers in the region in June.
OKX is one of many crypto exchanges looking to spread their business tentacles to Dubai. For instance, the world’s largest crypto exchange by trading volume, Binance revealed in April that it also received a provisional license to operate in the region.
In early June, Crypto.com also announced it was expanding into the city. While many other crypto exchanges, including the likes of Kraken and ByBit are also showing interest in the UAE region.
Dubai Regulations
Dubai is one of the few regions with a clear stance on crypto, at least, to a reasonable extent. By March, the city’s Prime Minister and ruler Sheikh Mohammed bin Rashid Al Maktoum announced VARA – a new crypto law on trading digital assets. And this law meant that only VARA-approved crypto exchanges and firms can do any sort of crypto business in the region. But there’s a model.
After getting the VARA approval, firms must employ the market model of testing, adjusting, and scaling. And in this time, only pre-approved investors and professional financial service providers may get access to a few products and services from the exchange. But the entire market will be under the keen observation of VARA the whole time.
After a while, and having fulfilled all requirements under the observation, VARA may now grant full access to other retail investors.