Why Is OKX “Extremely Bullish” On UAE? Company Secures Full Operational License, Launches Trading Platform

Crypto exchange OKX has officially launched its trading platform in the UAE after securing a full operational license. The development allows the platform to extend its services to both retail and institutional investors in the region.

Following successful completion of mandatory onboarding steps via the OKX website or mobile app, UAE residents can now access various trading services, including spot trading, express buy and sell options, conversion features, and on-chain earning opportunities.

EXPLORE: 15 Best No KYC Crypto Exchanges for 2024

Derivatives Trading For Qualified Investors

In addition to spot trading services, OKX offers derivatives trading for eligible retail and institutional investors who meet specific requirements. To gain access, traders must pass a knowledge test and undergo a suitability assessment.

Additionally, applicants need to provide documentation confirming that they hold at least 500,000 dirhams (approximately $136,000) in liquid assets, which must remain accessible for a reasonable period, as specified by OKX.

For institutional investors, the qualification process includes adherence to Know-Your-Customer (KYC) protocols and meeting two out of three liquidity benchmarks: a minimum balance sheet of $20 million, an annual net turnover of at least $40 million, or own funds amounting to a minimum of $2 million.

Bringing A New Alternative to Dubai 🇦🇪

We've officially launched our VARA-licensed crypto exchange in Dubai. We're now the first global crypto company in UAE to offer AED banking rails to customers.

More on our plans to BUIDL by our MENA GM @RifadM:https://t.co/p3H30uIC54 pic.twitter.com/drBDGF5LxN

— OKX (@okx) October 10, 2024

The milestone follows nearly nine months of OKX holding a conditional license from Dubai’s Virtual Assets Regulatory Authority (VARA).

The transition to a fully operational status was contingent on meeting regulatory criteria set by the UAE authorities, emphasizing the country’s structured approach to overseeing the cryptocurrency market.

“We are extremely bullish on the UAE as a crypto hub and only see the sector growing in the next few years,” Rifad Mahasneh, General Manager for OKX in the Middle East and North Africa (MENA) region, said.

EXPLORE: New UAE Regulations Could Potentially Ban Crypto Payments, Says Crypto Lawyer Irina Heaver

AED Integration And Market Adaptation

With its UAE-specific approach, OKX enables local investors to deposit and withdraw dirhams (AED) through local banking channels.

The platform also supports trading pairs between AED and major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Tether (USDT). The integration of Arabic language features and customer support further simplifies the experience for users in the region.

OKX’s move into the UAE market aligns with similar efforts by other exchanges, such as M2, which recently introduced AED trading capabilities.

In May 2024, crypto options trading platform QCP Capital received in-principle approval for regulated digital asset activities from ADGM. QCP is now the first Singapore-based crypto market maker and broker to receive a preliminary license in the region.

Additionally, popular firm Chainalysis recently established regional headquarters in Dubai. The company is actively engaging with local government stakeholders to provide advice on regulatory development in the crypto industry.

The presence of multiple licensed exchanges in the UAE underscores the country’s growing role as a hub for cryptocurrency activity, offering both local and international investors a secure and regulated trading environment.

EXPLORE: How to Buy Bitcoin in Dubai, UAE

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.