Why can't Dubai OKX trade anymore

Due to regulatory concerns, including a cease and desist order and lack of licensing, major crypto exchange OKX has been prohibited from trading in Dubai.

Oct 22, 2024 at 12:30 pm

Why Can't Dubai OKX Trade Anymore?

OKX, a major cryptocurrency exchange, has been under scrutiny in Dubai, United Arab Emirates (UAE), due to regulatory concerns. Here are the reasons why OKX can no longer trade in Dubai:

1. Cease and Desist Order:

   • In March 2022, the Dubai Financial Services Authority (DFSA) issued a cease and desist order to OKX, prohibiting it from conducting any regulated activities within the Dubai International Financial Centre (DIFC).

2. Lack of License:

   • OKX did not have a license from the DFSA to operate within the DIFC. The DFSA requires all financial institutions operating in Dubai to obtain a license to ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.

3. Unregistered Crypto Exchange:

   • Under Dubai's Virtual Assets Regulatory Authority (VARA) regulations, crypto exchanges must register and obtain a license to operate legally in Dubai. OKX was not registered with VARA at the time of the cease and desist order.

4. Violations of Regulations:

   • The DFSA alleged that OKX had violated several regulatory requirements, including failing to conduct adequate due diligence on its customers and failing to maintain appropriate AML and KYC procedures.

Consequences for OKX

As a result of the cease and desist order, OKX has been forced to discontinue all trading activities in Dubai and has withdrawn its services from the region. Traders in Dubai can no longer access OKX's platform to buy, sell, or trade cryptocurrencies.

Impact on the Crypto Market

OKX's withdrawal from Dubai has had a significant impact on the local crypto market. OKX was one of the largest cryptocurrency exchanges operating in Dubai, and its departure has created a void for traders and investors who relied on its platform.

Ongoing Investigations

The DFSA is currently investigating OKX's operations in Dubai and may impose additional penalties or sanctions depending on the outcome of its investigation.