Okto, the self-custodial wallet developed by the Indian cryptocurrency exchange CoinDCX, has successfully obtained an operational license from the Ras Al Khaimah Digital Assets Oasis (RAK DAO) in the United Arab Emirates, marking a significant step in its expansion and the broader acceptance of Web3 technologies in the region.
On August 27, Okto announced the acquisition of the license which enables it to legally operate within the UAE. This achievement distinguishes Okto as the first Web3 wallet to secure such a license within the country’s dedicated free zone for digital assets, underscoring its pioneering role in the sector.
Okto’s Attributes:
- Type: Multichain decentralized finance (DeFi) wallet.
- Ownership: Fully owned by a subsidiary of DCX Global, a Mauritius-based holding company.
- Features: Offers a keyless, self-custody wallet for managing digital assets.
Neeraj Khandelwal, co-founder of CoinDCX and Okto, emphasized that the license from RAK DAO would “further enhance the trust and confidence” of their community and potentially accelerate the adoption of Web3 technologies to mainstream audiences. This step is part of CoinDCX’s broader strategy to expand its presence and influence in the UAE’s burgeoning digital asset market.
RAK DAO’s Commitment to Web3 Innovation
The UAE established RAK DAO in 2023 as an economic free zone dedicated to virtual assets, blockchain, Web3, and artificial intelligence technologies. It aims to cater to service providers that are building emerging technologies, including those related to the metaverse, wallets, non-fungible tokens (NFTs), and other Web3-oriented businesses.
Dr. Sameer Al Ansari, CEO of RAK DAO, stated that the issuance of the new license to Okto reflects the zone’s commitment to “creating a supportive and transparent environment for innovative Web3 companies.”
CoinDCX’s Expansion and Regulatory Engagement in the UAE
CoinDCX’s venture into the UAE market included the acquisition of the UAE-based crypto exchange BitOasis on July 3. Although BitOasis continues to operate independently under its existing licenses, this acquisition plays a crucial role in CoinDCX’s strategy to solidify its footprint in the Middle East.
BitOasis’s Regulatory Milestones:
- Bahrain License: Secured a Category 2 license from Bahrain’s central bank, allowing it to function as a broker-dealer under stringent regulatory conditions.
- Dubai License: First to obtain an operating license in Dubai, later suspended by Dubai’s Virtual Assets Regulatory Authority (VARA) in July 2023 for not meeting key conditions, and subsequently reinstated in April 2024.
The journey of CoinDCX and Okto through regulatory landscapes highlights the challenges and opportunities within the rapidly evolving digital asset sector. Navigating these complexities requires adherence to regulatory standards and proactive engagement with governing bodies, ensuring that operations remain compliant and secure.
The successful licensing of Okto in the UAE positions CoinDCX to leverage new opportunities within the Middle East’s digital economy. This strategic move not only enhances Okto’s service offerings but also contributes to the broader adoption and normalization of cryptocurrency and blockchain technologies in regional and global markets.
The operational license secured by Okto represents a milestone in CoinDCX’s expansion strategy and a significant advancement for the Web3 and cryptocurrency sectors in the UAE. As the digital asset landscape continues to mature, initiatives like these will likely play a pivotal role in shaping the future of finance and technology both regionally and globally.
Featured image credit: DALL-E by ChatGPT
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