Malta-based cryptocurrency exchange OKX is the first platform in the entire crypto industry to receive a MiCA pre-authorization license, enabling it to operate as a Virtual Financial Assets (VFA) exchange across the European continent.
The exchange stated in an official blog post-Thursday that MiCA pre-authorization was a milestone that would enable the firm to reach over 400 million European residents with its crypto suite of services via the European Economic Area (EEA) hub based in Malta.
OKX Plans to Passport from Its Malta Hub
According to the statement, pre-authorization of the Markets in Crypto-Assets Regulation (MiCA) will allow customers across the region to access all the exchange’s services and products. The said products include spot trading, OTC trading, and bot trading for over 240 digital assets, which include over 260 trading pairs and at least 60 Euro-based crypto trading pairs. Commenting on the development, OKX Europe CEO Erald Ghoos stated:
“OKX will be the go-to digital asset platform for retail and institutional customers in Europe for any digital asset offering under a fully regulated framework.”
Having achieved the first milestone, the platform is now working towards obtaining the full MiCA license, which it plans to passport from its Malta headquarters to all 30 EAA member states. According to the existing MiCA regulations, passporting is a process that allows a business licensed in one member state to extend its services in the rest of the region using a unified regulatory framework. Once it achieves the second milestone, OKX aims to offer localized crypto services throughout the area from its Malta headquarters.
MiCA Rules Prioritize Consumer Protection
Ghoos further stated:
“The Malta Financial Services Authority (MFSA) is renowned for its thorough regulatory framework and is at the forefront of global regulatory standards. Through our Malta Hub, OKX customers will be offered the best, most secure, and fully compliant digital asset platform.”
Mica is a body that aims to provide a unified regulatory framework for the cryptocurrency market across the European Union and prioritizes consumer protection, market integrity, and transparency. The set of regulations it pushes includes a robust anti-money laundering framework that intends to eliminate malicious actors from the crypto industry and its related financial systems. MiCA wants to simplify access for digital asset operators within the region by creating facilities that enable entities to operate hassle-free within EU countries without seeking a separate license from each country.
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The Licensing Aligns with the Firm’s Goals
With the MiCA pre-authorization, OKX will now be at liberty to introduce localized crypto exchange products suited especially for the European market. The products the firm is expected to introduce leveraging the new license include a simple, user-friendly exchange customized for newcomers, an advanced exchange for expert traders, and comprehensive wallets for crypto fans.
The company intends to create a platform with customized features in local languages, displaying local currencies and local-language customer-support teams, enhancing accessibility and engagement. The company observed that the MiCA pre-authorization aligns with its goals and vision of expanding its reach to the European region.
Conclusion
The granting of MiCA pre-authorization to crypto exchange OKX is a new milestone within the crypto industry. It highlights the growing trend of crypto firms working towards complying with friendly regulations. Other companies that have received related authorizations include crypto.com, which secured an in-principle approval for a MiCA license, just like MoonPay did earlier. Meanwhile, OKX is actively spreading its influence beyond Europe, having launched exchange and Web3 services in Argentina to cater to the Latin American market.
Frequently Asked Questions (FAQs)
What is MiCA?
MiCA stands for Markets in Crypto Assets regulation, established by the European Council. It intends to create a unified approach to cryptocurrency regulation within the EU space.
Why is MiCA important?
MiCA intends to harmonize crypto regulations within the EU and is on its way to becoming the first intra-governmental institution to establish a crypto regulatory framework for crypto service providers and crypto asset issuers.
What does MiCA mean for the crypto-assets industry?
Most EU member states are working towards replacing their current laws to include crypto assets or creating such laws from scratch. This is intended to level the playing field for the benefit of industry players and consumers.
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