OKX, the global on-chain technology company operating one of the biggest global crypto exchanges, has officially gone live in the UAE. It operates as OKX Middle East Fintech FZE, with a full license from the Dubai Virtual Asset Regulatory Authority (VARA).
As per the announcement, OKX is the first global crypto company in UAE to offer AED banking rails for its retail and institutional customers. This means that virtual asset investors in the UAE can now deposit and withdraw AED directly to and from the OKX platform via local bank accounts.
UAE residents who complete the required onboarding steps on the OKX app and website can now access a range of services, including spot trading, convert, express buy & sell, and on-chain earning products. Additionally, qualified and institutional investors who meet specific criteria will have access to derivatives trading.
OKX is the first crypto exchange with an AED order book in the UAE
Speaking to Cryptopolitan, OKX Middle East General Manager Rifad Mahasneh explained that while the exchange might not be the first to go live in the UAE, it is offering three key pieces that set it apart from others.
According to Mahasneh, the first key piece is the instantaneous AED banking transfers with the OKX client money account. Retail and institutional users can deposit funds locally through their own currency (AED) using a local bank, Zand Bank.
OKX offers a wide selection of cryptocurrencies and trading pairs in the UAE, with over 280 cryptocurrencies and 480 trading pairs, including BTC/AED, ETH/AED, and USDT/AED.
He notes that the second key piece, a first for the UAE, is the AED order book. He explains, “Users can now trade AED, BTC, ETH, USDT, with other users matched in market, differing from the existing model brokerage model prevalent in the UAE. The local AED order book will lower fees and help to ensure quicker transactions.”
Mahasneh believes that this will allow OKX to become an infrastructure player for other regulated entities in the ecosystem, such as crypto brokers who can then buy and sell from this local order book and so forth. Mahasneh explains, “This helps to ease liquidity for the whole market, with the competitive advantage being both the local order book and local AED transfers.”
While many crypto exchanges have received licenses, for each product that is launched there on after, VARA (Virtual Asset Regulatory Authority) needs to review and approve. Mahasneh explains that it took the right amount of time to get the products approved by VARA, and it was a collaborative process.
Localization is key to OKX
In terms of its business model, OKX Middle East’s General Manager believes that users are looking for a crypto exchange that offers the least amount of friction, transparency, regulation, and compliance. He notes that OKX, with its local AED transfer offering, eases friction as does the AED order book.
He states, “While we are a global exchange, we have been setting up regulated exchanges locally such as Singapore, Brazil, Netherlands, Turkey, Australia and UAE. This is our strategy to be local as one of our competitive advantages.”
In terms of expansion in other MENA countries, the GM notes that this is always on the radar, depending on the size of these markets and their regulatory environment. Their focus is on the UAE for now.
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
OKX will list regulated AED stablecoins with the right criteria
OKX’s General Manager believes that the recent Central Bank stablecoin AED regulation is a brilliant move and is a move in the right direction.
He believes that it is not only great to have an AED stablecoin, but the potential of it being used as a payment mode is as innovative as the regulation itself. He states, “At the end of the day, if one of the AED stablecoins meet the right criteria, we will trade them on our exchange. The opportunity to have these stablecoins in the payment space increases the utility of these stablecoins further and offering greater innovation in the UAE.”
Mahasneh notes that UAE KYC (Know Your Customer) and AML (Anti Money Laundering) compliance is of very high standards and that this was the toughest part of the license to comply with.
He states, “We have learned from the UAE regulations and take these learnings to other jurisdictions where we apply for licenses, as we also learn from other jurisdictions because not all regimes are the same and each regime enhances us.”
In line with its commitment to security and risk management, OKX also announced the appointment of Yuri Mushkin as Global Chief Risk Officer at the event. Mushkin brings over two decades of capital markets and risk management experience across traditional and digital assets, serving in executive roles at multinational companies such as Goldman Sachs and McKinsey & Co.
In the end, OKX’s vision is to continue to evolve the blockchain ecosystem, creating a new alternative application economy where builders will create a safer, more secure, and transparent internet.
