OKX Opens MiCA Hub in Malta, Highlights ‘Forward-Thinking’ Regulations

MiCA Passport Opens Doors for Crypto Industry

OKX’s decision to establish its MiCA hub in Malta was strongly influenced by the country’s progressive and forward-thinking stance on cryptocurrency regulation. The exchange also highlighted its existing personnel and infrastructure on the Mediterranean island as key factors in their selection.

Under the new MiCA regulations, OKX looks to provide various services to eligible EU residents through its Malta-based entity. These services include spot trading with EUR and USDC pairs and options to buy, sell, convert, and stake cryptocurrencies.

We're customer-focused & committed to regulation.

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

— OKX (@okx) July 18, 2024

MiCA, which will fully come into effect on December 30 of this year, will allow OKX and other crypto-asset exchanges to operate across the EU, facilitating services throughout the region.

OKX is one of the many exchanges looking to set their base in the European bloc in anticipation of the new MiCA rules.

OKX Chooses Malta as Hub for Crypto Expansion

Erald Ghoos, the General Manager-Designate of OKX Europe, explained that establishing their MiCA hub in Malta allows the company to offer world-class products to a diverse European customer base. He noted that the new regulatory standards aim to protect users while fostering the sustainable growth of the cryptocurrency industry. This regulatory environment, he claimed, also supports OKX’s long-term goals of expanding hiring and investment in Europe.

Ghoos said :

“We chose Malta after evaluating several jurisdictions because of its high regulatory standards. Malta is renowned for its thorough regulatory framework for blockchain and cryptocurrencies. This makes it an ideal location from which to extend our product offering to the European market.”

Ghoos emphasized that Malta, with its strong commitment to customer safety and security, is an ideal location for their MiCA hub.

MiCA Regulations Force Stablecoin Shakeup

MiCA, an extensive regulatory framework by the European Union, aims to standardize cryptocurrency regulations across member states. Approved by the European Parliament in April 2023, the framework is being implemented in stages, with full compliance required by the end of the year. Under MiCA, stablecoins issued within the EU face stricter regulatory mandates.

In anticipation of these new regulations, OKX delisted Tether (USDT) in April, shifting its focus to support USD Coin (USDC) and Euro-based stablecoin pairs. Starting June 30, stablecoin issuers were expected to comply with MiCA regulations. Circle, the issuer of USDC, became the first global stablecoin issuer to meet these requirements on July 1, allowing it to distribute its stablecoins, USDC and EURC, within a structured regulatory environment.

BREAKING NEWS: @Circle announces that USDC and EURC are now available under new EU stablecoin laws; Circle is the first global stablecoin issuer to be compliant with MiCA. Circle is now natively issuing both USDC and EURC to European customers effective July 1st.

Details… pic.twitter.com/isNBumoi3e

— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) July 1, 2024

OKX’s strategic decision to establish its base and obtain licensing in Malta could signal the emergence of Malta as a new hub for the crypto industry within the EU.

OKX Exits Nigeria Amid Regulatory Crackdown

While OKX selects Malta as its MiCA hub, it has also made an exit. On July 18, the exchange announced its departure from Nigeria, citing changes in local laws and regulations as the reason for ceasing customer services in the country. Users have until Aug. 16 to access the platform, after which they can only withdraw their funds or close their positions on the exchange.

OKX discontinuing their service in Nigeria is a big disappointment.

This govt just wants to take food from our table but we wont panic. pic.twitter.com/xQjmd4JPo6

— King.sol 🇶🇦 (@teddi_speaks) July 17, 2024

This decision follows an earlier action in May when OKX suspended withdrawals in Naira due to regulatory concerns. This move came in the wake of allegations against Binance, which was accused of manipulating Nigeria’s fiat currency, engaging in tax evasion, and laundering money.

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About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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