Crypto exchange OKX selected Malta as its Market in Crypto-Assets (MiCA) hub to serve 450 million EU residents, according to a July 18 statement.
The exchange highlighted explained that this strategic move will allow it to offer services in compliance with local regulations while ensuring easy deposit and withdrawal connectivity to local bank accounts.
Under the MiCA framework, OKX plans to offer spot trading, including EUR and USDC pairs, and comprehensive crypto services allowing its users to buy, sell, convert, and stake popular digital assets.
Why Malta?
OKX explained that it chose Malta as its MiCA hub for various reasons, including its high regulatory standards.
According to the firm, the country is well-known for its comprehensive regulatory framework for blockchain technology. This makes it an ideal base for expanding its products into the European market, OKX said.
Furthermore, OKX stated that another significant factor influencing its choice was the robust infrastructure and local team it has developed in the country since 2018. It added:
“Our 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. This establishes a strong regulatory foundation for us to offer secure and compliant services across the EU.”
MiCA effect
The MiCA regulation is already significantly affecting crypto operations in Europe.
MiCA is a regulatory framework created by the European Union to standardize crypto regulations across member states. The European Parliament approved MiCA last year, and the rules are being implemented in phases.
The first phase of MiCA, targeting stablecoins, took effect on June 30. The second phase will follow in six months.
On July 1, Circle, the issuer of USDC, became the first global stablecoin firm to comply with MiCA. Additionally, the Cardano blockchain released its sustainability indicators to ensure compliance with the European MiCA regulations.