Coindesk reported that the cryptocurrency exchange OKX originally planned to choose France as a European compliance venue, but it has now been pointed out that it has changed to Malta. The move is said to be motivated by looser regulatory compliance in the region with regard to the EU’s Markets in Crypto-Assets Act (MiCA), which has just come into effect.
OKX changes choice of European headquarters from France to Malta
According to Coindesk, citing people familiar with the matter, OKX has chosen the Mediterranean island of Malta as the regulatory landing place, rather than France as previously mentioned.
He revealed that OKX is recruiting for several director-level positions that will be dedicated to the Malta region:
The exchange is looking for several senior positions in Malta, including head of compliance, head of operations and head of internal audit.
In May last year, both OKX and Binance stated that France would be their preferred European registration location and revealed that they would hire approximately 30 full-time employees within the first year:
OKX’s French branch was registered with the French Authority for Financial Markets (AMF) at the end of December.
(Will USDT lose a large market? EU MiCA new stablecoin regulations are about to take effect: How does Binance ensure compliance)
It is reported that France and its AMF have stricter compliance standards, consumer protection and financial stability regulations for encryption companies.
People familiar with the matter: The reason behind MiCA’s entry into force
In this regard, people familiar with OKX’s European regulatory process attributed the reason behind OKX’s adjustment of landing areas to the EU’s Crypto Asset Market Act (MiCA) that came into effect this month.
As the world's first and most comprehensive cryptocurrency regulatory system, MiCA regulations stipulate that only electronic money institutions (EMIs) and credit institutions can issue stablecoins, and exchanges must also obtain cryptoasset service providers from EU countries in accordance with the law. CASP) license to operate in EU countries.
Of course, OKX also needs to comply with the EU’s MiCA regulatory framework. Sources said:
Compliance is much looser in Malta than in France, even if that’s not the label for crypto companies looking to establish themselves in the industry and expand into the EU.
It is reported that Malta, as the headquarters of many financial institutions, has recently accepted many encryption companies. The local Financial Services Authority (MFSA) updated the regulatory rules for encryption companies at the end of last year in response to the upcoming MiCA.
In March this year, OKX just reached a settlement agreement of 304,000 euros (approximately US$329,000) with the MFSA for its subsidiary Okcoin Europe to resolve certain regulatory issues and agreed to take several other measures, including hiring a third party to Review the company's operations.
A few days ago, as the first MiCA-compliant stablecoin issuer, Circle announced that it would officially open its USDC and EURC services to European commercial customers, ahead of its competitor Tether, which has controversial operations and compliance.
(Circle becomes the first MiCA-compliant stablecoin merchant, will Tether’s leading position be shaken?)
This article Coindesk: OKX chose Malta instead of France due to loose supervision and MiCA compliance first appeared on Chain News ABMedia.