OKX Seeking Regulatory Approval to Operate in Dubai, Plans to Expand Middle East Operations

OKX, one of many world’s largest cryptocurrency exchanges, is in search of regulatory approval to function in Dubai because it plans to develop the corporate’s Center East operations, an govt advised Reuters on Thursday.

Regulation is an trade development, OKX International Head of Authorities Relations Tim Byun mentioned.

“We wish to get forward of that curve and be regulated in a sound method,” he mentioned.

Earlier this month, the US Securities and Alternate Fee (SEC) sued Binance and Coinbase, one other two of the biggest crypto exchanges, for allegedly breaching its guidelines.

Byun mentioned he believed the SEC’s transfer would push extra candidates in the direction of progressive regulators like Dubai’s Digital Asset Regulatory Authority (VARA).

OKX plans to rent 30 employees, Byun mentioned, after opening an workplace final month within the Dubai World Commerce Heart within the enterprise and monetary hub of the United Arab Emirates.

OKX Center East mentioned on Thursday it had obtained a preparatory licence from Dubai’s regulator, a primary step in the direction of securing an working licence that may permit it to serve institutional shoppers and traders.

“If we develop Dubai to supply companies in Saudi Arabia or Bahrain, to jurisdictions the place there isn’t a home framework required, then these home populations are literally getting a windfall profit as a result of we’re regulated by a global regulator,” Byun mentioned.

OKX is regulated within the Bahamas and at the moment doesn’t permit clients from the US to make use of its platform on account of regulatory points.

VARA was fashioned in March 2022 to control the rising digital asset sector within the emirate – excluding the Dubai Worldwide Monetary Centre monetary free zone — because the UAE pushes to develop into a worldwide hub for the trade.

No agency has but been licensed beneath VARA’s full market product (FMP) stage — which might allow the serving of retail shoppers, regulator data reveals. OKX plans to use for such a licence, Byun mentioned.

“If territories are prepared to provide you with a balanced clear clear method, OKX wish to be regulated and licensed and function in that jurisdiction,” Byun mentioned.

© Thomson Reuters 2023