In a significant achievement for OKX, the global cryptocurrency exchange has secured its full Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). This announcement was made by OKX Middle East General Manager Rifad Mahasneh during the company’s gala event at the Museum of the Future, titled “A New Alternative for Dubai.” The license came just eight months after OKX received in-principle approval in January 2024. Unlock Blockchain sat down with Rifad Mahasneh to discuss the rapid progress, the introduction of fiat and AED trading, and how OKX is set to reshape the digital asset landscape in the UAE.
For more details on OKX’s licensing journey, you can read our previous interview with Rifad Mahasneh, here.
Fast-Tracked VASP License: A Landmark for Fiat and AED Trading
“Securing the full VASP license in just eight months speaks to the hard work of our team and the supportive regulatory environment in Dubai,” Mahasneh explained. This achievement allows OKX to offer more than just crypto-to-crypto trading—it enables fiat integrations with AED, which Mahasneh highlighted as crucial for the local market.
“We’ve always been a crypto deposit firm, but now we’re introducing fiat into the mix. The ability to transfer in from AED is super important for us and the UAE market,” he shared. OKX now supports direct transfers in AED, giving users the ability to trade using their local currency without foreign exchange complications.
Introducing Local Infrastructure: A New Model for the UAE
Mahasneh emphasized the importance of building local liquidity for the UAE market, a feature that sets OKX apart from traditional broker-based models. “We’re setting up a local order book where you can buy and sell dirhams directly,” he said. Unlike models where brokers source liquidity from global markets, OKX’s new system will match buyers and sellers within the UAE, providing more transparent and direct access to local liquidity. This infrastructure layer will be a significant enhancement for the country’s growing digital asset ecosystem.
Zand Bank Partnership: Strengthening the Fiat Integration
A vital component of this success has been OKX’s strategic banking partnership with Zand Bank, one of the UAE’s leading digital-first banks. Mahasneh elaborated on how this collaboration helped streamline the fiat-to-crypto process, providing secure and efficient banking services for OKX users.
“Our clients’ funds are held with Zand Bank, which has been instrumental in supporting our AED operations. This partnership ensures that OKX offers both a reliable and compliant financial infrastructure,” he noted. The collaboration with Zand Bank reflects OKX’s commitment to delivering a robust, fully localized trading experience in the UAE.
Tailoring Global Expertise for the UAE Market
OKX’s rapid success in securing the VASP license also highlights its focus on localization. Mahasneh emphasized that OKX has adapted its global platform to meet the specific needs of UAE investors. “We’ve integrated fiat options like AED, something that drastically lowers barriers for local investors, and added local liquidity infrastructure that enhances the trading experience,” he explained.
This achievement stands in contrast to OKX’s decision to withdraw its application for a license in Hong Kong earlier this year, citing regulatory hurdles. The move reflects OKX’s broader strategy of focusing on markets where regulation supports innovation and growth.
Expanding Product Offerings: Unique Derivatives Trading
With the VASP license in place, OKX is set to offer a range of advanced services, including virtual asset derivatives and margin trading—services not offered by any other VASP in the UAE. According to Mahasneh, OKX is now uniquely positioned to serve both retail and institutional clients, leveraging its global liquidity pool and regulatory approval to provide a seamless trading experience.
“Offering regulated derivatives trading in the UAE is a huge milestone, especially for institutional investors who require a compliant framework to operate. We’re one of the few platforms globally offering this service, and the first to do so in the UAE under a VASP license,” Mahasneh highlighted.
The New OKX Wallet: Innovation Based on User Feedback
OKX’s reimagined wallet, launched globally in September, is another significant part of its local offering. Featuring an enhanced interface and expanded token discovery, the wallet provides access to over 100 blockchains and millions of digital assets. Mahasneh noted that feedback from UAE users has been overwhelmingly positive.
“Our users appreciate the intuitive design and faster trading execution. The wallet offers seamless navigation, better token discovery, and global liquidity, all based on user feedback. This is just the start for us, and we’ll continue to innovate as we grow,” he added.
Future Outlook: A Bullish View on the UAE’s Digital Asset Space
When asked about the future of digital assets in the UAE, Mahasneh expressed strong optimism. “The UAE continues to deliver on both opportunity and regulation. We’re bullish on this market, and we believe there’s still so much more to come. With our newly launched services and our long-term commitment, OKX aims to lead the digital asset revolution in this region,” he concluded.
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