OKX, a prominent crypto exchange and Web3 technology company, has announced that it will establish Malta as its Markets in Crypto-Assets (MiCA) hub. This decision aims to ensure compliance with the regulatory framework set by the European Union (EU).
In a press release shared with Cointelegraph, OKX highlighted Malta’s “high regulatory standards” and the existing team and infrastructure as key reasons for selecting the country. Erald Ghoos, the OKX Europe General Manager, elaborated on this decision, noting the company’s “VFA Class 4 license in Malta since 2021.”
Ghoos explained the broader regulatory impact of establishing the MiCA hub in Malta, stating that “MiCA will be harmonizing crypto regulation across all 27 EU member states and 3 additional EEA states.” He emphasized that OKX has a fully operational team in Malta, including compliance, risk, legal, finance, and senior leadership teams.
“We have selected Malta as our MiCA hub in preparation for MiCA’s implementation, enabling us to offer regulated crypto-assets access to EU users once MiCA takes effect,” Ghoos added.
Advantages of Malta as a Base
According to the press release, Malta provides an “ideal base” for OKX to offer its services to EU customers due to its “comprehensive regulatory approach.” OKX plans to offer spot trading to qualified EU residents through Okcoin Europe Ltd, including Euros and Circle USD (USDC).
Additionally, the exchange intends to introduce staking services and other trading options to EU residents once MiCA comes into full effect on December 30.
Minimal Impact of MiCA Standards on OKX
Ghoos mentioned that the “uplift” to new MiCA standards would be minimal for OKX, affirming the firm’s choice of Malta as its “home regulator for MiCA passporting.” He highlighted the company’s focus on user experience and the goal to localize products and services for local communities.
“We have a strong focus on user experience and want to localize our products and services to our local communities,” Ghoos stated. He also noted that OKX would continue building a localized experience in the EU while offering security and transparency by publishing monthly proof of reserves.
OKX’s Exit from Nigeria
In contrast to its expansion in the EU, OKX has announced its exit from Nigeria due to changes in “local laws and regulations.” Users have been given an August 16 deadline to access the platform, after which they will only be able to withdraw their funds or close their positions on the exchange.
OKX suspended Naira withdrawals in May, citing regulatory concerns. This move followed accusations against Binance for manipulating Nigeria’s fiat currency, engaging in tax evasion schemes, and laundering money.
| Development | Description |
|---|---|
| Malta as MiCA Hub | Chosen for high regulatory standards and existing infrastructure |
| Regulatory Framework | Harmonizing crypto regulation across 27 EU states and 3 EEA states |
| Service Offerings | Spot trading, staking services, and other trading options for EU residents |
| MiCA Implementation Date | December 30 |
| User Experience Focus | Localization of products and services |
| Transparency Measures | Monthly proof of reserves |
| Exit from Nigeria | Due to changes in local laws and regulations |
| Naira Withdrawal Suspension | May, citing regulatory concerns |
Industry experts have noted that OKX’s move to Malta reflects a strategic alignment with the EU’s evolving regulatory landscape. The decision to establish a MiCA hub in Malta is seen as a proactive step towards ensuring compliance and expanding the company’s footprint in the European market.
OKX’s decision to establish Malta as its MiCA hub underscores the company’s commitment to regulatory compliance and its strategic focus on the European market. As the crypto industry continues to evolve, such moves are essential for fostering trust and ensuring sustainable growth
Featured image credit: bearfotos via Freepik
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