Cryptocurrency exchange OKX has chosen Malta Island as its Markets in Crypto Assets (MiCA) hub as it aligns itself with the European Union (EU) rules and regulations.
According to the exchange, users in the EU will access OKX to buy, sell, convert, and access staking services through OKCoin Europe. OKX is also planning on spot trading various EU-approved cryptocurrencies like Circle’s EURC and USDC that was recently approved after the issuer received clearance in France.
Malta enables OKX to broaden its market
Erald Ghoos, OKX Europe general manager-designate said the move will broaden its market reach across Europe. It will also enable the company to improve its service offering in line with global standards.
“We’ve established our MiCA hub in Malta because it will enable us to provide world-class products to a diverse range of customers across Europe,” said Ghoos.
Ghoos further added that the new regulatory standards will support the industry’s sustainable development while enabling the exchange to increase hiring and investment in the European region.
The exchange continues to face challenges in other regions
According to OKX, Malta is a strategic location for the business. After evaluating several other jurisdictions, OKX chose Malta based on its high regulatory standards, existing team, and good infrastructure.
“I can think of no better place to establish our MiCA hub than Malta due to its track record of prioritizing customer safety and security,” Ghoos mentioned.
OKX’s local entity, OKCoin Europe, was granted a Class 4 Virtual Financial Assets (VFA) Service Provider License from the Malta Financial Services Authority (MFSA) in 2021. Establishing a MiCA in Malta heightens OKX’s growth prospects in Europe. This comes after the company launched a crypto exchange and Web3 wallet in the Netherlands and Türkiye this year.
Despite the growth prospects in Europe, it’s not all rosy for the crypto exchange. The crypto exchange has announced it will cease operations in Nigeria because of regulatory concerns. OKX told its customers in an email that they had until August 30 to withdraw their digital assets from the exchange.
In May this year, OKX put a pause on Naira withdrawals due to regulatory concerns. Now the move to cease operations in Nigeria came after the government held Binance responsible for financial misconduct, money laundering, exchange rate manipulation, and being part of some tax evasion schemes.
