One of Seychelles' leading crypto exchanges, OKX has obtained a Virtual Asset Services License from Dubai. Following this, the exchange intends to set up a regional hub in the crypto-friendly city. The hub will serve as its operational base to provide services and some products to investors throughout the United Arab Emirates.

This does not come as a surprise because Dubai and the United Arab Emirates (UAE) in general have become a major hotspot for the crypto market. The development makes OKX the latest exchange to secure Dubai's Virtual Assets Services License in the region this year.

Why the License Is Good for OKX

The crypto space has attracted many mainstream big names. One of them is PayPal, which acquired Curv to help it move into the crypto industry. Crypto-based startups are however, exploring avenues for further growth, but you may be wondering why the License from Dubai means a lot for OKX. Well, the following are reasons why it is a big deal.

Dubai Is a Booming Crypto Hub

OKX's General Manager, Lennix Lai states that the choice of Dubai is because of the rapid growth of the crypto ecosystem in the city, according to report from Beincrypto.com. The city has become the crypto hub for the entire UAE, welcoming top exchanges like Binance. With a population of over three million, Dubai has a large market for crypto that is far from saturated.

The license couldn't have come at a better time because it has now placed OKX in a strategic position to take advantage of the booming ecosystem for growth and expansion. The Dubai government has demonstrated over the years that it wants to become one of the world's leading destinations for crypto and blockchain. Indeed, issuing the Virtual Asset Services License to OKX is a big step towards achieving that goal.

Friendly Regulation

A Hand signing on a document

One of the major challenges the crypto space faces is the lack of clear regulation. In the United States for instance, regulators have not seen the need to draft a regulatory framework for the industry until the Biden administration.

Even then, there is no conclusion yet. This is a major reason why the industry hasn't grown as it should in the country. A similar situation is obtainable in Seychelles where OKX is based, as well as in most European countries.

Dubai on the other hand doesn't only have a clear, but also a “balanced regulatory framework” for the industry, according to Lai. Needless to say that OKX will thrive in such an environment and grow faster than other exchanges that are still in places like the United States.

Breaking New Grounds

Dubai is a booming crypto hub, but it is also still in its infancy. So far, OKX is one of the few foreign crypto exchanges that will have an established operational base there. In the near future, it will be influencing the behavior of Dubai's population towards cryptocurrencies in a big way, just like the other exchanges.

It is therefore breaking new grounds not just by extending its reach but also by bringing crypto trading and investing services to the fast-growing market. This is good for the growth of the space and for crypto adoption in general.

Open hands holding crypto coins

Few Competitors

Dubai established a Virtual Asset law in April 2022 and since then, not many exchanges have obtained the license to render virtual asset services in the city. OKX is therefore one of the first exchanges to secure the license and that leaves it with almost no competition at this time.

Before most exchanges secure the same license to take advantage of Dubai's potential, OKX will have been established as one of the pioneer exchanges in the region, giving it a major edge over its competitors.

How Is OKX's License Good for Crypto?

Right now, OKX is one of the few top exchanges with a Virtual Asset Services License in Dubai. Going forward, it will provide virtual asset services and products to Dubai's booming crypto market. The UAE as a whole will patronize the exchange, giving it a major advantage for growth.

OKX is therefore now placed in a strategic position, and it's positioning isn't only good for its growth and expansion, but also for the entire crypto space. A booming ecosystem, clear and balanced regulation, as well as fewer competitors are just some reasons why this development holds promise for OKX and the crypto ecosystem.