OKEx Announces Malta as USDC/EUR Hub, Ends Nigeria to Comply with Regulation

 

Global cryptocurrency exchange OKEx has announced that it has selected Malta as its MiCA hub in the European Union. The move is part of a strategy to offer euro (EUR) trading pairs and USDC stablecoins. In addition, the company intends to offer services such as buying, selling, converting, and staking to qualified residents in the region.

OKEx chose Malta because of its high regulatory standards and innovative approach to blockchain and cryptocurrencies. In addition, OKEx’s existing infrastructure on the Mediterranean island and its local team were key factors.

“We established our MiCA hub in Malta because it will enable us to provide world-class products to a diverse range of customers across Europe,” said Erald Ghoos, General Manager Designate of OKX Europe.

Ghoos further highlighted that the new regulatory standards aim to protect users and support the sustainable development of the cryptocurrency industry, allowing the company to deepen its hiring and investment in Europe.

OKEx’s local entity, Okcoin Europe Ltd, has held a Virtual Financial Asset Service Provider License from the Malta Financial Services Authority since 2021.

The company adopts a regulated model in Europe, investing in compliance, risk and corporate governance. One of the exchange’s main goals is to become one of the most accessible cryptocurrency venues.

How did the MiCA Act impact the choice of Malta?

MiCA is a comprehensive regulatory framework established by the European Union to create uniformity in crypto asset regulation across its member states. Approved by the European Parliament in April 2023, its rules are being implemented in stages.

As part of this framework, stablecoins issued in the region are required to comply with stricter regulatory requirements. Some provisions are being phased in, with full compliance required by the end of the year.

Stablecoin issuers had to comply with certain MiCA requirements starting June 30. USDC issuer Circle was the first global stablecoin company to become MiCA compliant on July 1.

Additionally, Circle’s EU strategy and policy director Patrick Hansen and chief strategy officer Dante Disparte stated that they expect non-compliant stablecoins to “disappear” from the EU market in the short to medium term.

OKEx’s European expansion comes with the end of its operations in Nigeria

Recently, OKEx also announced that it will be shutting down its services in Nigeria from August 30th due to changes in local regulations.

“OKEx is committed to adhering to the applicable rules and regulations of all jurisdictions in which we endeavor to offer services,” an OKEx spokesperson said.

Customers in Nigeria will be blocked from accessing their accounts from the date provided, but the company assured that their funds remain safe. In May, OKEx halted withdrawal services for the Nigerian naira as the country stepped up regulatory scrutiny on Binance and other centralized exchanges.

At the time, Nigerian authorities filed criminal charges against Binance for alleged money laundering and tax evasion, but later dropped the tax charges. Tigran Gambaryan, a former US Internal Revenue Service agent and Binance’s head of financial crimes compliance, and Nadeem Anjarwalla, Binance’s regional executive, were detained upon their arrival in Nigeria in February.

While Anjarwalla managed to escape Nigerian custody, Gambaryan remains detained in the country, his health deteriorating due to a combination of malaria and pneumonia. Several US lawmakers have called for stronger action from the White House to immediately bring the Binance executive back.