- OKX is planning to locate its European hub in Malta, changing from its previous decision to base itself in France
- The exchange is seeking to comply with the new Markets in Crypto Assets (MiCA) regulations
- An insider has revealed that OKX prefers Malta’s “more lenient” regulatory approach over France
Crypto exchange OKX plans to locate its European hub in Malta, following a prior decision to base itself in France. The world’s second-biggest cryptocurrency exchange needs to choose a European home in order to comply with the newly arrived Markets in Crypto assets (MiCA) regulations, and Coindesk has revealed that the company has switched its attention to the Mediterranean island. OKX said last year that France would be its home, but, according to an insider, it prefers the “more lenient” approach taken by Malta.
Malta Compliance “Way More Lenient”
OKX announced last May that France would be its key regional hub in Europe, with ambitious plans to hire around 100 employees between 2023 and 2026. The Seychelles-based firm filed an application to become registered as a Digital Asset Service Provider (DASP) with France’s Financial Markets Authority (AMF) as part of the European Union’s implementation of MiCA regulations.
The regulation makes it easier for companies that have obtained approval in one EU country to operate across the entire bloc, and it seems that OKX believes it has more chance of obtaining the all-important first approval in Malta rather than in France.
It is not known whether the company has pulled its application, but if it is indeed switching its focus to Malta, then it is likely that it will wait until it has Maltese approval before expanding to other countries.
While obtaining a Maltese license might be easier, a source told Coindesk that it might backfire:
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 previous with Malta, agreeing to a “goodwill” settlement of €304,000 ($329,000) with the Maltese financial watchdog earlier this year over regulatory failings.
