OKX Launches First Crypto Derivatives In UAE Alongside Local Exchange

OKX, one of the world’s largest cryptocurrency exchanges, is the latest digital asset firm to enter the Middle East and Northern Africa (MENA) region.
On Oct. 10, OKX announced the launch of a new exchange regulated by the Virtual Assets Regulatory Authority (VARA) of the United Arab Emirates (UAE) to offer regulated spot and derivatives markets for digital assets.
Speaking at Dubai’s Museum of the Future, Rifad Mahasneh, OKX’s MENA general manager, said the exchange will serve both retail and institutional investors in the UAE. The platform supports deposits in the form of UAE dirham (AED) from local bank accounts.
“For the first time, we’ll be able to accept AED deposits directly from local users,” Mahasneh told The Defiant. “We’re also introducing a local order book that will match UAE-based users.”
The platform supports more than 280 digital assets and 180 trading pairs, including AED-based pairings for major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
OKX also launched exchanges in Australia, Singapore, and the Netherlands this year.
UAE seeks status as global crypto hub
OKX’s CEO, Star Xu, said that the decision to enter the UAE market was strategic, driven by the region providing regulatory clarity to the crypto industry.
“The UAE checked all the boxes for us,” Xu said. “It has a clear regulatory framework, a strong market with lots of opportunities, and a vibrant talent pool.”
Mahasneh echoed similar sentiments, saying the regulators in UAE have set a clear framework for the crypto industry.
“They want to support innovation while ensuring the market operates in a regulated, safe manner,” Mahasneh added. “It took us about three years to go through the full process, but we’re happy with the result.”
Sandeep Nailwal, the co-founder of Polygon, also emphasized Dubai’s favorable regulatory environment.
"Dubai has become one of the most favorable ecosystems for the blockchain and crypto industry," Nailwal said. "The regulatory framework here is clear and progressive, making it easier for companies to operate without excessive hurdles."
The Abu Dhabi Global Market (ADGM) introduced comprehensive regulations for cryptocurrency exchanges in 2018, two years after committing to foster its domestic distributed ledger technology sector through its “Dubai Blockchain Strategy. In 2022, the Dubai Virtual Asset Regulatory Authority introduced regulations for Virtual Asset Service Providers (VASPs) operating within the city.
Earlier this month, the Federal Tax Authority (FTA) revised its value-added tax (VAT) regulations, introducing upcoming VAT exemptions for cryptocurrency transfers and conversions. These new rules, set to take effect on Nov. 15, will make crypto transfers and conversions VAT-free in the UAE.
The permissive regulations have attracted investment from several of the largest firms working with digital assets, including Coinbase, Paxos, and SBI Holdings.
Introducing crypto derivatives to the UAE
The new exchange introduces locally-regulated cryptocurrency derivatives in the UAE for the first time.
“We are launching regulated derivatives products, which is something we’re very excited about,” Mahasneh added.
Qualified retail traders who meet regulatory requirements can access OKX’s derivatives platform alongside institutional investors. Mahasneh explained that qualified retail users must pass a suitability test and knowledge assessment, and provide proof of financial stability to trade derivatives on the platform.
“Derivatives trading is only available to qualified retail and institutional clients,” he said. “There is a strict qualification process in place to ensure that advanced traders, who typically use multiple strategies, have access to the tools they need.”
The launch positions OKX as a first-mover in the UAE, beating rivals like Binance and Crypto.com to offer derivatives products in the region.
OKX ranked as the second-largest exchange by derivatives volume during September with $565 billion or an 18.4% market share behind Binance with dominance of 40.7%.
OKX’s combined market share across both spot and derivatives trading now stands at 14.1% as Binance’s overall dominance recedes. Binance’s market share has slipped to 36.6%, its lowest level since 2020.
Related Posts
Advertisement
Get an edge in Crypto with our free daily newsletter
Know what matters in Crypto and Web3 with The Defiant Daily newsletter, Mon to Fri
90k+ Defiers informed every day. Unsubscribe anytime.