Crypto exchange OKX has recently selected Malta as its Market in Crypto-Assets (MiCA) hub in order to cater to the 450 million residents of the European Union. By making this strategic move, OKX aims to provide services that are compliant with local wregulations, while also ensuring seamless connectivity for deposits and withdrawals to local bank accounts.
OKX’s decision to choose Malta as its MiCA hub was influenced by various factors – one of them being the country’s high regulatory standards. Malta is known for its comprehensive regulatory framework for blockchain technology, making it an ideal base for expanding OKX’s products into the European market. Additionally, OKX highlighted the presence of a strong infrastructure and local team that has been developed in Malta since 2018 as another significant factor influencing their choice.
The MiCA regulation, which is aimed at standardizing crypto regulations across European Union member states, is already having a significant impact on crypto operations in Europe. Approved by the European Parliament last year, the implementation of MiCA is taking place in phases. The first phase, which targets stablecoins, came into effect on June 30, with the second phase scheduled to follow in the next six months.
On July 1, Circle, the issuer of USDC, became the first global stablecoin firm to comply with the MiCA regulations. This indicates a growing trend towards regulatory compliance within the crypto industry. In a similar vein, the Cardano blockchain has released sustainability indicators to ensure that it remains in line with the European MiCA regulations.
OKX’s choice to establish Malta as its MiCA hub signifies a strategic move towards complying with local regulations and expanding its services into the European market. The impact of MiCA regulations is already being felt across the crypto industry in Europe, with companies like Circle and Cardano taking steps to ensure compliance. As the regulatory landscape continues to evolve, it is likely that more crypto firms will follow suit in order to operate within the confines of the law.