OKX Chooses Malta Over France as EU Hub for MiCA Compliance

OKX selects Malta as its EU hub to comply with MiCA regulations, shifting from its initial choice of France due to more lenient compliance requirements.

In a strategic pivot, OKX, the world’s second-largest cryptocurrency exchange, has decided to establish Malta as its European Union hub to comply with the upcoming Markets in Crypto Assets (MiCA) regulations. Initially, OKX had targeted France as its preferred hub, but the decision has now shifted in favor of Malta due to its more lenient compliance environment.

OKX chooses Malta as its European hub for MiCA compliance.

Key Points:

Decision Shift:

• OKX initially aimed to establish its EU hub in France.

• The company has now chosen Malta, citing more lenient compliance requirements.

Compliance Strategy:

• Malta's regulatory environment is perceived as less stringent, making it a favorable choice for OKX.

• The move is part of OKX's strategy to align with MiCA regulations, which require a physical presence and a registered status in an EU nation.

Hiring Plans:

• OKX plans to fill several high-profile roles in Malta, including head of compliance, operations lead, and head of internal audit.

MiCA Regulations:

• MiCA's stablecoin rules are already in effect, with the rest of the regulations set to be implemented by December.

• Companies need a Crypto Asset Service Provider (CASP) license to operate across the EU.

Malta’s Crypto Environment:

• Malta has become a hub for gaming companies and investment firms, embracing the crypto industry in recent years.

• The Maltese Financial Services Authority (MFSA) updated its rules in late 2023 to align with MiCA.

Regulatory Settlements:

• OKX settled a goodwill agreement of 304,000 euros with the Maltese financial watchdog earlier this year for certain regulatory failings.

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OKX's decision to make Malta its European Union hub for MiCA compliance reflects the strategic importance of regulatory environments in the rapidly evolving crypto industry. While France was initially favored, Malta's more lenient compliance requirements have made it the preferred choice. This move underscores the dynamic nature of the crypto regulatory landscape and OKX's commitment to aligning with EU regulations.

Source: Coindesk