OKX selects Malta as EU MiCA hub, plans EUR and USDC pairs under new framework

OKX, one of the largest crypto exchanges by trading volume, has selected Malta as its MiCA hub as the new regulatory framework rolls out across the European Union.

The firm said it chose Malta over other jurisdictions due to the country’s high regulatory standards and “forward-thinking” approach to blockchain and cryptocurrency, as well as OKX’s existing personnel and infrastructure based in the Mediterranean island.

Under the MiCA framework in the EU, OKX plans to offer spot trading, including EUR and USDC pairs, along with buy, sell, convert and staking services to eligible EU residents through its Malta entity. Once fully effective on Dec. 30 this year, MiCA will enable crypto-asset exchanges to passport into EU countries and provide services across the entire region, OKX said.

“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,” OKX Europe General Manager-Designate Erald Ghoos said. “These new regulatory standards, which aim to protect users while supporting the sustainable development of the crypto industry, also enable us to deepen our hiring and investment in Europe in the long-term. 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.”

OKX’s local entity, Okcoin Europe Ltd, has held a Virtual Financial Assets Service Provider License from the Malta Financial Services Authority since 2021. OKX said it was embracing a regulated model in Europe, investing in compliance, risk and corporate governance, aiming to become one of the most accessible crypto venues.

In February, OKX launched a crypto exchange in Turkey as part of its international expansion plans.

MiCA’s impact on the EU market

Markets in Crypto Assets (MiCA) is a comprehensive regulatory framework established by the European Union to create uniformity in crypto regulation among its member states. MiCA was approved by the European Parliament in April 2023, and the rules are being implemented in stages.

As part of that framework, stablecoins issued in the region are required to pass increased regulatory requirements. Other provisions, including some that apply to stablecoins, are being phased in over time, with full compliance for all aspects required by the end of the year.

Stablecoin issuers were required to comply with certain MiCA requirements beginning June 30. USDC issuer Circle became the first global stablecoin firm to become compliant with MiCA on July 1.

Earlier this month, Circle’s EU Strategy and Policy Director Patrick Hansen and Chief Strategy Officer Dante Disparte said they expect stablecoins that don’t comply with MiCA regulations to “vanish” from the EU market in the short to mid-term.