The Dubai-based subsidiary of crypto exchange OKX, named OKX Middle East Fintech FZE, announced today (Tuesday) that it has received a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA), enabling the company to offer virtual asset exchange services.

OKX Enters Middle East

The newly gained license would allow the global crypto exchange to offer spot services and spot pairs to institutional and qualified retail customers in the Middle East. However, the newly gained license will remain non-operational as the company needs to “fully satisfy all remaining conditions and select localization requirements,” which is expected to be completed in the coming weeks.

The operational license came months after the Dubai subsidiary of OKX was granted a preparatory license by VARA.

“The MENA region holds immense potential to become a hub of excellence for Web3 and virtual assets. We eagerly anticipate the chance to further enhance the already flourishing ecosystem throughout the region,” said Rifad Mahasneh, the General Manager for the MENA Region at OKX.

Dubai’s Bet on Crypto Companies

Dubai, one of the emirates in the UAE known for its encouraging service-based business, streamlined the crypto rules with a framework last year and established a separate regulatory body, VARA, to oversee the sector.

Dubai's decision to push towards regulating the cryptocurrency industry encouraged many big and small names to establish their presence in the city. Crypto.com, Ripple, Binance, and Bybit are only a few names to obtain crypto licenses from Dubai’s regulator.

“This license was a crucial step for OKX as we move from a trust-based system to one that is trustless and empowers users to take control of their financial future,” said Tim Byun, the Global Head of Government Relations at OKX. “Dubai is an important market for us, and we're excited to build strong relationships with our users and contribute to the development of its crypto and Web3 ecosystem.”