OKX, the second-largest cryptocurrency exchange in the world, has decided to make Malta its European hub in order to comply with the new Markets in Crypto Assets (MiCA) regulation in the European Union. This decision marks a shift from their previous plan to establish their hub in France.
According to sources familiar with the matter, OKX believes that compliance in Malta is more lenient compared to other EU countries, making it a more attractive location for their operations in the crypto space. The exchange is now actively seeking to fill key positions in Malta, such as head of compliance, operations lead, and head of internal audit.
In order to operate in Malta and obtain the necessary licenses, companies like OKX must have a physical presence in the country, conduct business activities there, and be registered with the relevant authorities. While the stablecoin rules under MiCA are already in effect, the full regulatory framework is expected to be implemented by December.
Malta has been increasingly welcoming towards companies in the crypto and blockchain industry, with many gaming companies and investment firms choosing to establish their operations on the island. The Malta Financial Services Authority (MFSA) updated its regulations for crypto businesses in 2023 to align with the upcoming MiCA rules, further solidifying Malta’s position as a crypto-friendly jurisdiction.
Earlier this year, OKX reached a settlement of 304,000 euros with the Maltese financial watchdog for certain regulatory shortcomings. Despite this, the exchange remains committed to expanding its presence in Malta and ensuring full compliance with the MiCA framework.
The decision to choose Malta as its European hub signifies OKX’s strategic approach to navigating the evolving regulatory landscape in the EU. By establishing a strong presence in Malta and hiring key personnel for compliance and operations, OKX aims to position itself as a leading player in the European crypto market.
Overall, OKX’s move to Malta reflects the growing importance of regulatory compliance in the crypto industry and highlights the significance of choosing the right jurisdiction for conducting business in the EU. As the MiCA framework continues to take shape, companies like OKX are proactively adapting their strategies to meet the new regulatory requirements and enhance their competitiveness in the market.