OKX selects Malta for the establishment of its MiCA Hub in Europe
OKX, one of the largest crypto exchanges by trading volume, today announced that the Mediterranean island of Malta has been selected for the establishment of its Markets in Crypto-Assets (MiCA) hub in anticipation of the EU's implementation of the new regulatory framework. This aligns with its objective of emerging as the leading cryptocurrency exchange within the European Union (EU).
We're customer-focused & committed to regulation.
— OKX (@okx) July 18, 2024
As part of this ethos, we're excited to announce that Malta will be our MiCA base in EU.
Through MiCA, we look forward to serving millions of Europeans under one regulatory framework.
More: https://t.co/m4KAzdiirp pic.twitter.com/jbOusgoA06
Following the launch of its Web3 wallet and cryptocurrency exchange in the Netherlands and Turkey in 2024, OKX has reached another significant milestone in its growth with the establishment of its MiCA hub in Malta, according to a press release.
After assessing a number of jurisdictions, OKX decided on Malta due to the nation's robust infrastructure, high regulatory standards, and the company's current workforce. Malta is a perfect starting point from which OKX can provide its services to customers in the EU because of its forward-thinking and all-encompassing regulatory approach to blockchain and cryptocurrency.
Since 2021, the Malta Financial Services Authority (MFSA) has granted Class 4 Virtual Financial Assets (VFA) Service Provider Licenses to OkX's local subsidiary, Okcoin Europe Ltd.
According to OKX, the cryptocurrency sector will become more regulated in the future. In an effort to rank among the most reputable and easily accessible cryptocurrency venues, the company is adopting a regulated model in Europe and is investing in compliance, risk, and corporate governance.
Erald Ghoos, General Manager-Designate OKX Europe, stated: "We chose Malta as the location for our MiCA hub because it will allow us to offer top-notch products to a wide range of customers throughout Europe."
In the long run, these new regulations, which aim to safeguard consumers while promoting the sustainable growth of the cryptocurrency sector, will also allow us to increase our hiring and investment in Europe. Given its history of placing a high priority on the safety and security of its patrons, I cannot think of a better location for our MiCA hub than Malta.
OKX intends to provide qualified EU residents with buy, sell, convert, and stake services through Okcoin Europe Ltd., as well as spot trading (including EUR and USDC pairs) under the MiCA framework. MiCA will enable cryptocurrency exchanges to start passporting into EU nations and offering services across the EU on December 30, 2024, when it becomes fully operational.
The European Union created Markets in Crypto Assets (MiCA), a comprehensive regulatory framework, to bring uniformity to crypto laws across its member states. Stablecoins issued in the region must comply with stricter regulations as part of that framework. Additional provisions, some of which pertain to stablecoins, are being phased in gradually, and all requirements must be fully complied with by the end of the year.
This development coincides with OKX's announcement that it would be leaving Nigeria and suspending customer support owing to modifications in "local laws and regulations." Users can only access the platform until August 16th, after which they can only withdraw their money or close their positions on the exchange.
WhaleInsider earlier reported that Circle is now the first stablecoin issuer worldwide to comply with the Markets in Crypto-Assets (MiCA) regulatory framework established by the European Union.
With effect from July 1, Circle is the first stablecoin issuer worldwide to comply with MiCA, according to CEO Jeremy Allaire. The regulatory framework will allow Circle to issue its stablecoins, USDC and EURC, in Europe, the report added.
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