On Tuesday, the leading crypto exchange in Seychelles, OKX, secured the virtual asset service provider (VASP) license from the Virtual Assets Regulatory Authority (VARA). The approval of the VASP license demonstrated OKX’s commitment to operate compliant in Dubai.
In the January 16 report, the OKX Middle East Fintech FZE confirmed the approval of the VASP license. The approval of the license will enable the crypto exchange to offer a wide range of crypto products, including fiat-to-crypto transactions.
OKX Eying for Middle East Expansion
The OKX team plans to introduce the spot services to eligible institutional and retail clients. The report demonstrated that OKX will allow middle east users to access their unique products through the exchange and the online application.
A statement from OKX’s general manager for the Middle East and North Africa (MENA) region, Rifad Mahasneh, confirmed that the crypto exchange will exercise the entire operation of the VASP in the coming weeks due to the existing compliance standards. It implies that the OKX team will remain non-operational to meet other regulatory requirements for the VASP.
In the meantime, Mr Mahasneh confessed that the OKX team was working closely with the regulators to complete the remaining regulatory requirements. The executive projects that before the end of Q1 of 2024, the OKX VASP arm will be fully operational.
Mahasneh added that after satisfying the VASP requirements, the crypto exchange will expand its market presence in the Middle East.
OKX Bags VASP License in Dubai
The expansion of OKX to the Middle East echoes the remarkable effort made by firms to enter the vibrant Middle East crypto markets. Also the enforcement of friendly regulations for digital assets has positioned Dubai as a go-to destination for crypto firms.
Last year, the prominent prime minister in Dubai, Sheikh Mohammed bin Rashid Al Maktoum, approved new crypto laws. Also, Mr Maktuom established a new regulatory agency, VARA, to oversee the operation of the crypto sector.
The enforcement of the new law aimed at shielding the crypto investors from exploitative business activities. The minister granted the VARA legal authority to exercise control over the special and free economic zones in Dubai.
Role of VARA
Since the launch of VARA, the agency has facilitated the issuing of licenses to compliant companies. In his statement, Mahasneh recognized the remarkable achievement made by VARA in licensing registered crypto exchanges in Dubai.
The executive acknowledged that VARA has efficiently been issuing crypto licenses as directed by the existing regulations for digital assets in the Middle East. With the changes in the financial landscape, Mahasneh admitted that OKX enacted high standards of compliance measures to abide by the law.
He recognized the efforts made by VARA to create comprehensive regulations for digital assets that support responsible growth of the digital sector. The executive vowed to work with VARA to support the development of the crypto industry in Dubai.
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