OKX Chooses Malta Over France as European Hub to Comply with EU’s MiCA Crypto Rules

OKX, the world’s second-largest cryptocurrency exchange, has decided to establish Malta as its European Union hub to comply with the region's new Markets in Crypto Assets (MiCA) regulation, sources close to the matter revealed. This marks a strategic shift from their earlier decision to base their operations in France.

According to insiders, the move to Malta is driven by the country's more lenient compliance environment, despite potential concerns about the perception of regulatory laxity. A person with direct knowledge of OKX's European regulatory efforts commented, “Compliance in Malta is way more lenient, and that's not the tag you want to have when you're in crypto and trying to make it in the EU."

OKX has been registered with France's financial regulator, Autorité des marchés financiers (AMF), since December last year. However, the company is now redirecting its focus to Malta, which has become increasingly attractive to crypto firms due to its updated regulatory framework that aligns with the forthcoming MiCA regime.

The MiCA regulation requires crypto firms to secure a crypto asset service provider (CASP) license with an EU nation to operate across the entire bloc. To obtain this license, companies must have a physical presence, conduct some business in the country, and be registered.

In preparation for its operations in Malta, OKX is looking to fill several high-profile roles, including head of compliance, operations lead, and head of internal audit. This move follows a "goodwill" settlement earlier this year where OKX agreed to pay 304,000 euros ($329,000) to Malta’s financial watchdog for certain regulatory failings.

Despite the regulatory hurdles, Malta’s embrace of the crypto industry has made it a favorable destination for companies seeking to navigate the evolving landscape of European crypto regulations.