OKX Middle East Secures License to Prepare for Dubai Operations

The Dubai Virtual Assets Regulatory Authority (VARA) has given OKX Middle East, the Middle Eastern division of OKX, the second-largest cryptocurrency exchange by trading volume, an MVP Preparatory license. With the help of this license, OKX Middle East can be ready for the forthcoming operating license.

OKX Middle East recently opened an office in the Dubai World Trade Center to support its expanding presence. The company intends to increase its employment to 30 workers, with a focus on senior management positions and local hiring.

According to a press statement, OKX Middle East will provide spot, derivatives, and fiat services once the MVP license is fully operational, including deposits, withdrawals, and spot-pair transactions involving the US dollar and United Arab Emirates dirham (AED).

Dubai’s VARA Grants License to OKX Middle East, Enabling Future Operations

Tim Byun, OKX’s global head of government relations, expressed the significance of Dubai as a regional hub for the United Arab Emirates (UAE) and the Middle East and North Africa (MENA) region. Byun also praised Dubai’s comprehensive and timely regulatory framework, highlighting the Dubai Virtual Assets Regulatory Authority (VARA) as a responsible and dedicated regulator. In an interview Byun stated, “We think Dubai is very important and serves as our regional hub for UAE and MENA (Middle East and North Africa). [Dubai] has probably the most comprehensive and timely regulation to date. It has one responsible, dedicated regulator in VARA, and we think that clarity and finality of who to go to when it comes to regulations is a huge plus.”

The U.S. Securities and Exchange Commission’s (SEC) recent legal actions have spurred crypto exchanges to look for international options. For instance, Binance recently praised Dubai as a desirable headquarters in an interview with CoinDesk, while Coinbase is considering constructing an offshore center in Bermuda. In March, VARA granted an MVP Preparatory license to the Singapore-based cryptocurrency exchange Crypto.com.

Both OKX and Binance have decided to focus other markets like Dubai over continuing to operate in Canada. Byun highlighted that OKX, however, still has a strong commitment to both Canada and the Ontario Securities Commission (OSC). Byun reiterated that they want to apply for a broker-dealer license from the OSC and emphasized that they intend to bring their exchange back to the Canadian market as soon as is practical.

Byun highlighted OKX’s proactive approach in entering the U.S. market through OKCoin, which operates under a distinct brand, in response to the recent SEC enforcement proceedings against exchanges. Byun made it clear that OKX has never allowed American users to access its platform and that it is not now operating in the American market. He did, however, say that the business will consider the idea of joining the U.S. market in the future, making sure to follow all applicable laws.

Byun expressed optimism about opportunities outside the U.S., particularly in regions like Dubai, the Bahamas, Gibraltar, France, and the European Union (EU). He said, “For OKX, we have always blocked U.S. customers and so we are not active in the U.S. We will make a decision about the U.S., when and if to enter that market, in an appropriate and compliant manner. But we think that outside of the U.S. there are huge opportunities. That’s what we love about Dubai, as well as the Bahamas and other territories such as Gibraltar, France, and the entire EU, as they come out with MiCA in 2024.”

When asked whether Coinbase and Binance would likely experience similar SEC actions, Byun declined to make any predictions, stating, “I can’t speak to any specific or plausible or future actions.”