OKX Picks Malta Over France as Europe Hub to Comply With EU’s MiCA Crypto Rules: Sources

As a seasoned crypto investor with experience in navigating the complex regulatory landscape of Europe, I can’t help but be intrigued by OKX’s decision to make Malta its European hub for MiCA compliance. Having closely followed the developments in this space, I understand that Maltese regulations have historically been more lenient towards crypto businesses compared to other EU jurisdictions.

According to two sources privy to the information, OKX, the globe’s second-largest cryptocurrency exchange, intends to establish Malta as its European headquarters and ensure MiCA regulatory compliance.

OKX has shifted its strategy, as they announced in May 2021 that France would be their primary base in the European Union. Since December, OKX France has been authorized and registered with the French financial regulatory body, Autorité des marchés financiers (AMF).

As a researcher delving into the regulatory landscape of cryptocurrency exchanges in Europe, I’ve discovered that Malta’s compliance regulations are notably less stringent compared to other jurisdictions. However, this leniency may not be an advantageous trait for crypto platforms aiming to establish a strong presence within the European Union.

OKX declined to comment on the Malta decision.

As a researcher studying the regulatory landscape of cryptocurrencies in Europe, I’ve observed that companies aiming to offer cryptoasset services within the European Union have been actively pursuing registration in one of the 27 EU member states. This proactive step is being taken in preparation for the Markets in Crypto-Assets (MiCA) regulations, which come into effect soon and mandate that firms secure a Crypto Asset Service Provider (CASP) license from an EU nation to legally operate throughout the European Economic Area.

To obtain a CASP (Crypto Asset Service Provider) license in that particular nation, firms must first establish a tangible business presence, conduct some transactions within the country, and be officially registered. The initial MiCA regulations regarding stablecoins have already been implemented, while the remaining rules are set to be released in December.

Malta, known for its thriving gaming industry and investment firms, has adopted cryptocurrencies as part of its economic landscape in recent years. Towards the end of 2023, the Maltese Financial Services Authority (MFSA) made adjustments to its regulatory framework for crypto businesses, aligning with the upcoming Markets in Crypto Assets (MiCA) European Union legislation.

As a researcher, I’m currently seeking individuals for key leadership positions within our organization based in Malta. We’re specifically looking for candidates to fill the roles of Compliance Head, Operations Lead, and Internal Audit Head.

This year, OKX reached an agreement in good faith to pay a fine of €304,000 (approximately $329,000) to the Maltese financial regulatory authority due to specific regulatory lapses.

Camomile Shumba contributed reporting to this story.