Crypto Exchange OKX Goes Live in UAE with Local Banking Integration and Regulated Derivatives
OKX has officially launched its operations in the United Arab Emirates (UAE), marking a significant milestone for the company’s expansion into the Middle Eastern market. This move comes nine months after OKX Middle East Fintech FZE was granted a full license by the Virtual Assets Regulatory Authority (VARA). The exchange is now live, offering a dirham-denominated order book and integration with a local bank, which will enable residents to access the cryptocurrency market without relying on brokers who typically charge higher fees.
The launch of OKX in the UAE is expected to attract both retail clients and institutional investors who have been hesitant to participate in the crypto market. Rifad Mahasneh, the exchange’s general manager for the Middle East, emphasized that the company has two primary targets: to become the preferred retail app for local residents and to convert institutions into participating in the space.
"We have two main objectives," said Mahasneh in an interview. "Firstly, we want to be the go-to retail app for locals, offering them a seamless and secure experience when trading cryptocurrencies. Secondly, we aim to persuade traditional institutions to enter the market by providing them with access to regulated derivatives products, local-currency options, and banking channels."
According to Mahasneh, the combination of these features will provide comfort to entities representing global institutions, which have so far been hesitant to participate in the crypto market due to concerns about regulatory oversight. "The return on investment for us will come from our ability to convert traditional institutions into participating in the space," he added.
OKX has partnered with Zand Bank, a digital bank that claims to be the UAE’s first fully licensed and all-digital financial institution. This partnership will enable OKX users to fund their accounts using local currency, eliminating the need for international transfers and associated fees. With 280 tokens and 400 trading pairs available in the region, OKX is poised to become a leading exchange in the UAE.
Binance and Crypto.com are the other major international exchanges with full licenses from VARA. While Binance has not yet responded to requests for comment on its status in the UAE, Crypto.com’s retail app is now available in the country following a partnership announcement with Standard Chartered in August.
OKX’s license was issued by VARA on September 17th. However, Mahasneh pointed out that the company had to complete certain conditions set forth in the license before going live. "While the license reflects VARA’s confidence in our ability to operate in this space, there are specific requirements we needed to meet," he explained.
"The entire process from start to finish took 24 months," added Mahasneh, highlighting the complexity and rigor involved in obtaining regulatory approval for a crypto exchange.
OKX’s Strategic Approach
The launch of OKX in the UAE marks a significant milestone in the company’s strategic approach to expanding its presence in the Middle East. As part of this effort, OKX has made significant investments in regulatory compliance and partnerships with local institutions.
Readers interested in learning more about OKX’s approach can refer to our previous article on the company’s strategic shifts towards regulatory compliance, Formula 1 branding, and app design.