OKX Goes Live in UAE, Targeting TradFi Institutions, Retail Market

As a seasoned analyst with years of experience navigating the complex world of cryptocurrency exchanges, I find OKX’s entry into the UAE market to be a strategic move that could potentially shake up the local landscape. The focus on institutional investors who are new to crypto and the offering of a dirham-denominated order book is a smart approach, as it addresses the concerns of potential investors who may have been hesitant due to regulatory uncertainties or lack of familiarity with cryptocurrencies.

In the United Arab Emirates, the cryptocurrency exchange OKX has launched operations. This new service offers an order book using the UAE Dirham (AED) and integrates with a local bank, aiming to draw in retail clients and encourage institutions that were previously hesitant about participating in the crypto market.

Nine months following the complete regulatory approval of OKX Middle East Fintech FZE by the Virtual Assets Regulatory Authority (VARA), will enable one of the top four cryptocurrency trading platforms by volume to offer local inhabitants direct access to a market, eliminating the need for a broker who typically purchases liquidity from outside the UAE at an increased price, adding both time and complexity. This was stated by Rifad Mahasneh, the exchange’s regional manager for the Middle East.

Mahasneh stated during an interview, “Our aim is twofold: we want our app to be preferred by retail users, and we intend to penetrate the market by attracting institutions in the UAE to join us. The rewards will stem from our success in transitioning traditional institutions.

By offering access to a regulated derivatives product, a local-currency product, and local banking services, our company creates an appealing platform for global institutions that have previously been hesitant to trade. Our banking partner, Zand Bank – the UAE’s first fully digital, all-licensed bank – plays a significant role in this endeavor.

As a crypto investor, I’m thrilled about OKX’s groundbreaking move to launch an AED banking integration alongside an AED order book, making it accessible for both retail and institutional investors. Moreover, it marks the first platform to offer regulated derivatives in the market. With a diverse selection of 280 tokens and 400 trading pairs available in the region, this development promises an exciting new chapter in my crypto journey.

Apart from Binance and Crypto.com, two significant international cryptocurrency exchanges, both have obtained full licenses from VARA. Following their partnership with Standard Chartered in August, Crypto.com’s retail app has now become accessible in the United Arab Emirates (UAE), according to a statement made to CoinDesk via email. At this point, Binance has yet to confirm if they have launched operations within the UAE following a request for comment from CoinDesk.

VARA’s public register shows OKX’s license was issued Sept. 17.

As a crypto investor, I’ve been assured by Mahasneh that VARA is confident in our ability to navigate this market. However, it’s important to note that the license we’ve obtained comes with certain requirements that must be met before we can officially launch. We also took this opportunity to thoroughly test our product, a process that spanned 24 months from start to finish.