Cryptocurrency exchange OKX has recently announced that it has chosen Malta as its Market in Crypto-Assets (MiCA) hub in order to cater to the 450 million residents of the European Union. This strategic decision was made with the intention of leveraging Malta’s high regulatory standards to ensure compliance with local regulations while providing easy deposit and withdrawal connectivity to local bank accounts.
The move to establish Malta as its MiCA hub will enable OKX to offer spot trading with EUR and USDC pairs, as well as a range of comprehensive crypto services that will allow users to buy, sell, convert, and stake popular digital assets. The decision to select Malta as the hub was based on various factors, including the country’s robust regulatory framework for blockchain technology and its reputation for high regulatory standards.
OKX has been operating in Malta since 2018 and has developed a strong infrastructure and local team in the country. Its local entity, Okcoin Europe Ltd, has been licensed as a Class 4 Virtual Financial Assets (VFA) Service Provider by the Malta Financial Services Authority (MFSA) since 2021, providing a strong regulatory foundation for the exchange to offer secure and compliant services across the EU.
The MiCA regulation, established by the European Union to standardize crypto regulations across member states, is already having a significant impact on crypto operations in Europe. The European Parliament approved MiCA last year, and the rules are being implemented in phases. The first phase, which targets stablecoins, came into effect on June 30, with the second phase set to follow in six months.
In light of the MiCA regulations, Circle, the issuer of USDC, became the first global stablecoin firm to comply with the framework on July 1. Additionally, the Cardano blockchain has released its sustainability indicators to ensure compliance with the European MiCA regulations, highlighting the importance of regulatory compliance in the rapidly evolving cryptocurrency landscape. As OKX establishes Malta as its MiCA hub, it is positioning itself to effectively serve the vast EU market while adhering to the evolving regulatory landscape in the region.