OKX secures VASP license from Dubai’s VARA

Rick Steves

“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.”

OKX Middle East Fintech FZE, the Dubai-based subsidiary of cryptocurrency exchange and Web3 technology leader OKX, has announced the acquisition of a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA) for VA Exchange Services.

The license, though currently non-operational, is contingent on meeting VARA’s conditions and localization requirements, paving the way for OKX Middle East to offer spot services and spot pairs to institutional and qualified retail customers via the OKX App and OKX.com exchange.

It was last Summer that OKX secured its provisional virtual assets license to operate in Dubai, which allowed the company to offer exchange products and services to pre-qualified investors and professional financial service providers under strict oversight and mandatory FATF compliance controls.

“MENA region holds immense potential”

Rifad Mahasneh, OKX General Manager for the MENA Region, said: “The future of digital assets and capital markets lies in the hands of regulated entities, and Dubai, along with VARA, has succeeded in establishing a distinctive environment that fosters the growth of Virtual Asset Service Providers. 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.”

Tim Byun, OKX Global Head of Government Relations, said: “Dubai and VARA are world leaders in crypto regulation by establishing the most timely, comprehensive and built from-the-ground-up framework for virtual assets and Web3. 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. 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.”

OKX boasts the trust of more than 50 million users and is a top partner for English Premier League champions Manchester City FC, McLaren Formula 1, Olympian Scotty James, and F1 driver Daniel Ricciardo. The company also holds a significant partnership with the Tribeca Festival, aiming to bring more creators into the Web3 space.

OKX adjusts to new FCA rules for UK-based users

In the United Kingdom, OKX announced new rules for its UK-based users in response to regulatory requirements set by the Financial Conduct Authority (FCA).

Since last week, UK users are required to complete an investor questionnaire to confirm their understanding of the risks associated with buying and trading digital assets. Additionally, a second questionnaire will assess the suitability of crypto investments for each user. Users who fail to complete these questionnaires or show their understanding of the risks will become ineligible to hold an OKX account.

OKX has taken steps to limit its token offering to approximately 40 assets and has implemented conspicuous risk warnings on its platform interface to comply with the forthcoming FCA regulations. The platform is delisting several privacy-focused cryptocurrencies, including Monero (XMR), Dash (DASH), and ZCash (ZEC).

The UK new regulations will impact crypto companies’ ability to engage with local customers, requiring them to be registered or authorized by the FCA when reaching out to U.K. clients. Under the new rules, the financial watchdog introduced a 24-hour “cooling-off” period specifically for first-time investors. This pause allows investors to take a step back and reconsider their decision before proceeding with this type of risky investment. Additionally, the practice of offering ‘refer a friend’ bonuses will be prohibited.

  • Read this next

    Fundamental Analysis

    Global FX Market Summary: EUR, Fed Minutes February 21, 2024

    Hawkish Fed minutes could strengthen USD, dovish BoE hints could boost euro, mixed economic data leaves impact unclear, FOMC minutes release today holds the most weight.

    Digital Assets

    360T launches Crypto NDF offering

    “By launching our crypto offering with non-deliverable derivatives products, we are allowing our diverse, global client base to engage with the crypto market without the need to build or invest in Distributed Ledger Technology (DLT) infrastructure. Looking ahead, we will continue to work with our industry partners to expand 360T’s crypto.”

    Technical Analysis

    FTSE 100 index Technical Analysis Report 20 February, 2024

    The FTSE 100 index is likely to fall to support level 7600.00 after reversing from resistance level 7750.00.

    Retail FX

    Afterprime enhances trade reporting with PrimeXM and TRAction

    “This collaboration has made setting up EMIR and MIFIR reporting for our CySEC entity a breeze, allowing us to maintain our focus on providing best-in-class pricing and top-notch customer service.”

    Market News

    US Market Stocks See a Dip Ahead of FOMC Minutes Announcement

    As the financial world eagerly awaits the release of the Federal Open Market Committee (FOMC) meeting minutes scheduled for today, the S&P 500 index begins trading slightly lower, marking a subtle shift in market sentiment following a prolonged rally.

    Fintech

    Adaptive proves that “the future of finance is in the cloud”

    “While workloads have migrated to the cloud over the past decade, some have doubted whether its latency and fault tolerance can match that of on-premises solutions – our joint testing on Google Cloud, proves that this is the case.”

    Retail FX

    Axi Select offers live trading amid “end of demo account prop firm model”

    “We genuinely empathize with the thousands of talented traders who will now be denied access to their allocated funds, and we encourage anyone using the demo trading registration model to question whether their prop firm partner will be able to continue as an ongoing concern given recent events. Unfortunately, this could be the beginning of the end for the demo account prop firm model.”

    Digital Assets

    Celsius founder Mashinsky agrees to shared lawyers with Sam Bankman-Fried

    Former Celsius CEO Alex Mashinsky has addressed potential conflicts of interest in his legal representation during a brief hearing in a New York courtroom.

    Digital Assets

    Sam Bankman-Fried captured in first jail photo

    Sam Bankman-Fried, the once-billionaire founder of FTX, has been spotted looking quite different with a new beard and a slimmer figure in a photo that’s been making rounds, reportedly taken inside New York’s Metropolitan Detention Centre.

    <