Coindesk: OKEx chooses to establish in Malta instead of France due to relaxed regulations, aiming for compliance with MiCA.

Coindesk reported that cryptocurrency exchange OKX originally planned to choose France as its European compliance venue, but it has now been pointed out that it has switched to Malta. It is said that this move is due to the more relaxed regulatory compliance in the region in light of the newly enforced EU's Markets in Crypto-assets (MiCA) regulation.

OKX Changes Choice of European Headquarters from France to Malta

According to sources cited by Coindesk, OKX has chosen the Mediterranean island of Malta as its regulatory base instead of the previously mentioned France.

The sources revealed that OKX is recruiting several executive positions dedicated to the Malta region:

The exchange is looking for several senior positions in Malta, including a Compliance Officer, an Operations Director, and an Internal Audit Director.

In May last year, both OKX and Binance had previously stated that France would be their preferred European registration location, with plans to hire around 30 full-time employees in the first year:

OKX's French subsidiary was registered with the French Financial Markets Authority AMF by the end of December.

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It is reported that France and its AMF have stricter compliance standards, consumer protection, and financial stability regulations for cryptocurrency companies.

Sources: MiCA Coming into Effect Is the Reason Behind the Move

On this matter, sources familiar with OKX's European regulatory process attribute the adjustment of OKX's landing region to the recent implementation of the EU's "Markets in Crypto-Assets Regulation (MiCA)."

As the world's first and most comprehensive cryptocurrency regulatory framework, the MiCA regulation stipulates that only Electronic Money Institutions (EMIs) and Credit Institutions can issue stablecoins, and exchanges must obtain a Crypto-Asset Service Provider (CASP) license from an EU country to operate within EU member states.

Of course, OKX also needs to comply with the EU's MiCA regulatory framework, with sources stating:

Compliance in Malta is much more relaxed than in France, even though that is not the label that crypto companies want when establishing themselves and expanding into the EU.

Malta, home to many financial institutions, has recently welcomed numerous cryptocurrency companies. The local regulator, the Malta Financial Services Authority (MFSA), updated its regulatory rules for crypto businesses at the end of last year to prepare for the incoming MiCA regulations.

In March this year, OKX's subsidiary Okcoin Europe reached a €304,000 (approximately $329,000) settlement agreement with the MFSA to resolve certain regulatory issues and agreed to take other measures, including hiring a third party to review the company's operations.

A few days ago, as the first stablecoin issuer compliant with MiCA, Circle announced the official opening of its USDC and EURC services to European business customers, leading the way ahead of its controversial competitors Tether in terms of operations and compliance.

Circle Becomes the First MiCA-Compliant Stablecoin Issuer, Will Tether's Dominance Be Challenged?