OKX, a crypto exchange and Web3 technology company, has announced that Malta will serve as its Markets in Crypto-Assets (MiCA) hub to ensure compliance with regulatory requirements in the European Union.
In a press release shared with Cointelegraph, OKX explained that Malta was chosen for its “high regulatory standards” and the firm’s existing team and infrastructure in the country.
Speaking with Cointelegraph, Erald Ghoos, the OKX Europe general manager, explained the decision further, explaining that the company has had its “VFA Class 4 license in Malta since 2021.”
Malta MiCA hub
About the regulatory implications of the Malta MiCA hub, Ghoos explained that “MiCA will be harmonising crypto regulation across all 27 EU member states and 3 additional EEA states.”
“[OKX has] a fully operating team in Malta, with local compliance, risk, legal, finance and senior leadership teams. We have selected Malta as our MiCA hub in preparation for MiCA’s implementation, enabling us to offer regulated crypto-assets access to EU users once MiCA takes effect.”
According to the press release, Malta makes an “ideal base” for OKX to offer its services to customers based in the EU due to its “comprehensive regulatory approach.”
Plans for fiat and stablecoin trading
The press release detailed OKX’s plans to offer spot trading to qualified EU residents through Okcoin Europe Ltd, including Euros and Circle USD (USDC).
The exchange also plans to offer staking services and other trading options to EU residents once MiCA comes into full effect on Dec. 30.
Ghoos explained that OKX believes the “uplift” to new required MiCA standards will “be minimal,” confirming the firm’s choice of Malta as its “home regulator for MiCA passporting.”
“We have a strong focus on user experience and want to localise our products and services to our local communities.”
Ghoos also explained that the exchange will continue building a localized experience in the EU while offering security and transparency by publishing monthly proof of reserves.
OKX exits Nigeria
The devlopemtn comes as OKX announced that it would be exiting Nigeria and halting customer services due to “local laws and regulations” changes.
Users have been given an Aug. 16 deadline to access the platform, after which they will only be able to withdraw their funds or close their positions on the exchange.
OKX suspended Naira withdrawals in May, citing regulatory concerns, following the accusation that Binance had been manipulating Nigeria’s fiat currency, carrying out tax evasion schemes, and laundering money.