OKX, the world’s second-largest cryptocurrency exchange, has decided to make Malta its European hub to comply with the European Union’s new Markets in Crypto Assets (MiCA) regulation. This move represents a change in strategy for OKX, which had previously announced France as its preferred EU base in May 2023.
Regulatory Considerations
A source familiar with OKX’s European regulatory efforts noted, “Compliance in Malta is way more lenient, and that’s not the tag you want to have when you’re in crypto and trying to make it in the EU.” Despite the lenient compliance environment in Malta, OKX aims to strengthen its regulatory standing in the region.
Malta’s Crypto-Friendly Environment
Malta has become an attractive destination for many crypto companies due to its favorable regulatory environment. In late 2023, the Malta Financial Services Authority (MFSA) updated its rules to align with the upcoming MiCA framework, further solidifying Malta’s position as a crypto-friendly hub.
To support its operations in Malta, OKX is looking to fill several high-profile positions, including head of compliance, operations lead, and head of internal audit. These roles are critical as the exchange prepares to meet the requirements of the MiCA regulation, which mandates firms to secure a Crypto Asset Service Provider (CASP) license to operate across the EU.
Also Read: OKX Unveils Wallet Blast Super Season, Expands to Netherlands
MiCA Regulation and Compliance
Under MiCA, companies must have a physical presence in an EU country, conduct business there, and be registered to obtain a CASP license. While some stablecoin rules under MiCA are already in place, the full set of regulations will come into effect in December. Companies are scrambling to register with one of the EU’s 27 nations to be ready for these changes.
Earlier this year, OKX agreed to a “goodwill” settlement of €304,000 ($329,000) with the Maltese financial watchdog for certain regulatory failings. This settlement indicates OKX’s commitment to resolving regulatory issues as it solidifies its presence in Malta.
OKX’s shift to Malta highlights the island’s growing prominence as a hub for cryptocurrency businesses. By establishing a strong regulatory foothold in Malta, OKX aims to navigate the complexities of the new MiCA regulations and continue its expansion in the European market.
