Cryptocurrency exchange OKX has obtained a minimal viable product preparation license from the Middle Eastern division, enabling its expansion into the Middle East. The license allows OKX to establish an office in Dubai’s World Trade Center and increase its local workforce to 30 employees. The crypto exchange emphasizes the importance of regulatory compliance and security in the current market climate.
OKX to offer spot, futures, and fiat services in Middle East expansion
According to reports, cryptocurrency exchange OKX’s Middle Eastern division has obtained a minimal viable product preparation license as part of its expansion plans in the Middle East.
In a notice dated June 15, the exchange stated that following the regulator’s licensing permission, the exchange expected to extend its employees in Dubai to 30 persons and had already established an office within the city’s World Trade Center structure. In July 2022, the crypto exchange received a provisional operating license from VARA, enabling it to provide goods and services in the area.
OKX’s global head of government relations, Tim Byun, emphasized the importance of licensing in Dubai as a crucial component of the exchange’s global regulatory compliance strategy. Byun highlighted the need for virtual asset service providers (VASPs) to prioritize security, transparency, compliance, and strong regulatory backing in the current uncertain market environment.
According to the exchange the preparatory license provided the exchange with the regulatory wiggle room needed to meet specific standards before going live. The company announced its intention to offer spot, futures, and fiat services in addition to spot pairs, deposits, and withdrawals in U.S. dollars and United Arab Emirates dirhams.
Coinbase and other international crypto companies have attempted to investigate the UAE as a potential new market in light of the U.S. government’s crackdown on digital assets. Coinbase and Binance became the targets of separate lawsuits by the U.S. Securities and Exchange Commission in June. Letitia James, the attorney general of New York, declared that CoinEx would no longer be allowed to conduct business in the state.
According to the report, the expansion came after the crypto exchange declared that it would cancel its operations in Canada by June 22. On March 20, cryptocurrency exchange OKX announced via email to its Canadian users that it would cease providing services and restrict the opening of new accounts in Canada as of March 24, 2023, 12:00 AM EST. The decision was attributed to “new regulations.” OKX specified that existing customers in Canada must close their options, margins, perpetual, and futures positions by June 22 and withdraw any fiat or tokens by that date.
OKX selects France as a European hub, seeks regulatory approval
On May 23, the exchange chose France as its European hub. It had sought regulatory approval. According to reports, it will ultimately comply with French regulatory requirements once it registers with the Autorité des Marchés Financiers (AMF). If OKX wins the license, it can offer local clients various services.
Tim Byun, the head of worldwide government relations at the crypto exchange, recently spoke about the benefits of the French DASP law, which establishes a secure and open regulatory framework for DASPs.
Byun said several additional cryptocurrency exchanges, including rival Binance, have obtained DASP permits from the French government.
The action is scheduled to take place in July 2024, just before the Markets in Crypto-Assets (MiCA) law of the European Union goes into effect. Even while the bill has received some criticism, it represents a significant step toward unifying the regulations that apply to the European crypto market.
The importance of the crypto exchange’s license application was stressed by Byun, who said it demonstrates the firm’s commitment to new legal standards and readiness for the future implementation of MiCA across the European Union.
In order to expand its presence in the French market, OKX plans to hire roughly 100 people over the next three years. The company’s decision to boost its human resources budget shows it is prepared to invest in the regional economy.
The company’s anticipated expansion into France has been praised by OKX President Hong Fang, who also emphasized the significance of OKX’s ongoing collaboration with European authorities.
By obtaining licensing approval for its expansion into the Middle East and seeking development opportunities in the French market, OKX continues taking calculated steps to increase its global presence. While larger exchanges such as Binance and Coinbase were sued by the SEC for allegedly breaching its rules, OKX proves its dedication to offering safe and dependable crypto services globally by strongly emphasizing regulatory compliance and client happiness.