James Atkins
Editor
Editor
A Seychelles-based company OKX, has been granted a provisional license to operate in the United Arab Emirates (UAE). Becoming the latest digital asset service provider to do so.
The Virtual Assets Regulatory Authority (VARA) has granted OKX a Crypto Assets Exchange License. Making it the second exchange to be licensed by the regulator after Abu Dhabi Global Market’s ADGM.
OKX’s temporary license which was issued by the Dubai-based Virtual Assets Regulatory Authority (VARA). Permits it to provide certain crypto exchange services and products to a carefully selected group of investors and financial service providers.
According to the OKX press release after receiving the provisional license. OKX states that the license “permits it to stretch certain exchange products and services to pre-qualified investors and financial service providers.”
OKX is a subsidiary of OK Group, which also owns the popular Crypto exchange OKEx. The group has plans to launch its digital asset exchange in Dubai by the end of this year.
The group says that it will offer services including spot and derivatives trading, custody, and token issuance on the Dubai exchange.
This is a big win for the Crypto industry as it opens up another major market for Crypto exchanges and services. It also shows that Dubai is serious about becoming a leading hub for Crypto and blockchain technology.
The news comes just days after another Crypto exchange, Binance, announced plans to set up a Crypto bank in Malta. This shows that the Crypto industry is continuing to grow and expand into new markets.
Lennix Lai, the OKX general manager for Dubai, while commenting on the progress says:
“The MENA region is one of the most dynamic marketplaces for our industry, and we are ecstatic to be at the epicenter of this developing ecosystem. OKX looks forward to making a significant contribution to the free flow of ideas that will be crucial to the growth of this industry while also pushing boundaries in a regulated environment. ”
The Virtual Assets Regulatory Authority (VARA) has issued preliminary licenses and approvals to several cryptocurrency exchanges since it was founded; at the beginning of this year. These exchanges include OKX, Binance, and Coinmena.
The Dubai government is working on becoming a world leader in blockchain technology. The Dubai Blockchain Strategy, which was launched in 2016, plans to have the city fully powered by blockchain by 2020.
So far, the strategy seems to be on track, with many initiatives being launched in recent years. To promote the adoption of blockchain technology in the emirate.
The issuance of provisional licenses and approvals, to cryptocurrency exchanges is a step in the right direction for achieving; the goals of Dubai’s Blockchain Strategy.
This will enable these exchanges to operate legally in the UAE. And provide much-needed infrastructure for the growing crypto industry in the region.
With the OKX approval, Dubai is now home to two licensed cryptocurrency exchanges, the other being BitOasis. This is a positive development for the crypto industry in the UAE. And is likely to attract more exchanges and businesses to the emirate.
The UAE is becoming a global center for the crypto business. This is evidenced by the expanding presence of cryptocurrency exchanges and other crypto service providers in Dubai. Dubai, in particular, serves as one of the world’s major cryptocurrency industry hubs.
Crypto businesses are attracted to the UAE because of its modern regulatory framework, its pro-business environment, and its strategic location.
The OKX approval is also a vote of confidence in the crypto industry. By the Dubai Financial Services Authority (DFSA) which is the financial regulator in the emirate.
The DFSA has been proactive in guiding the industry. And working with exchanges to ensure that they meet its requirements.
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
