In the ever-growing world of cryptocurrency and blockchain technology, Dubai is quickly becoming a focal point for innovation and regulation. The Middle Eastern arm of OKX, the second-largest cryptocurrency exchange by trading volume, has received an MVP Preparatory license from the Dubai Virtual Assets Regulatory Authority (VARA). This crucial move allows OKX Middle East to prepare for when the license becomes operational.
Setting its sights on Dubai World Trade Center, the company has already moved into its new office and plans to expand its staff to 30 with a focus on local hires and senior management. Once fully operational, OKX Middle East will provide spot, derivatives, and fiat services, including U.S. dollar and United Arab Emirates dirham deposits, withdrawals, and spot-pairs.
Tim Byun, OKX global head of government relations, explained in an interview that Dubai is crucial to their regional strategy, being an important hub for the UAE and MENA regions. He also praised Dubai’s comprehensive and timely regulation standards which, combined with a dedicated regulator in VARA, provides exceptional clarity for OKX Middle East.
On the global stage, cryptocurrency exchanges are continuously evaluating their options, especially amid recent lawsuits in the U.S. by the Securities and Exchange Commission (SEC). Coinbase has considered setting up an offshore hub in Bermuda, while Binance lauded Dubai as a potential base in a recent interview. In March, Crypto.com became another Singapore-based crypto platform to receive an MVP Preparatory license from VARA.
Both OKX and Binance have recently shut down operations in Canada, temporarily, but Byun emphasized OKX’s commitment to the Canadian market and the Ontario Securities Commission (OSC). While it may be a lengthy process, the exchange intends to return to Canada as soon as possible.
As for the exchange’s position in relation to SEC enforcement actions, Byun mentioned that OKX expanded very early into the U.S. via a separate brand, OKCoin. His company has always blocked U.S. customers and will decide whether or not to enter the market in a compliant manner. However, Byun sees immense opportunities beyond the U.S., citing Dubai, the Bahamas, Gibraltar, France, and the entire EU as potential markets – especially as the European Union rolls out its Markets in Crypto Assets (MiCA) legislation in 2024.
While the future remains uncertain, OKX Middle East has taken crucial steps to ensure it stays at the forefront of the cryptocurrency landscape, leveraging Dubai’s comprehensive regulation framework and fully embracing the blockchain revolution in the region.
Source: Coindesk
