Crypto exchange OKX has selected Malta as its Market in Crypto-Assets (MiCA) hub to serve 450 million EU residents, according to a July 18 statement.
The exchange emphasized that this strategic step will allow it to offer services in compliance with local regulations while ensuring easy deposit and withdrawal connectivity with local bank accounts.
Under the MiCA framework, OKX plans to offer spot trading, including EUR and USDC pairs, and comprehensive crypto services that allow users to buy, sell, convert and stake popular digital assets.
Why Malta?
OKX explained that it chose Malta as a MiCA hub for several reasons, including its high regulatory standards.
According to the company, the country is known for its extensive regulatory framework for blockchain technology. This makes it an ideal base to expand its products into the European market, OKX said.
Furthermore, OKX stated that another key factor that influenced 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 provides a strong regulatory foundation for us to provide safe and compliant services across the EU.”
MiCA effect
MiCA regulations are already having a significant impact on 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, focused on stablecoins, came into 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 company to comply with MiCA. In addition, the Cardano blockchain has released its sustainability indicators to ensure compliance with European MiCA regulations.