Cryptocurrency exchange OKX has recently announced that it has obtained a Payment Institution license in Malta, marking a significant development in its regulatory compliance strategy. This new authorization aligns with the European Union’s payments framework and ensures that OKX’s payment services are in accordance with the Markets in Crypto-Assets Regulation (MiCA) and the Second Payment Services Directive (PSD2).
This latest license follows the MiCA license granted by the Malta Financial Services Authority (MFSA) to OKX in January of the previous year. The MiCA license permits the company to provide localized services to customers throughout the EU, leveraging passporting rights. As a result, users in the European Union can now access a range of regulated crypto exchange products, including over-the-counter (OTC) trading, spot trading, as well as bot and copy trading, along with access to more than 240 cryptocurrency tokens across 300 trading pairs.
However, OKX’s journey in the regulatory landscape has not been without challenges. Last year, the exchange faced a €1.1 million fine imposed by Malta’s Financial Intelligence Analysis Unit (FIAU) due to failures in its anti-money-laundering (AML) practices. While the FIAU acknowledged that OKX had made improvements to its AML policies, the authority highlighted that the company’s business risk assessment did not adequately address risks associated with cryptocurrency mixers, privacy coins, stablecoins, and decentralized exchanges. This development serves as a reminder that holding a MiCA license doesn’t shield the company from previous compliance issues.
In light of these changes, OKX also made strides towards enhancing its regulatory framework by acquiring a MiFID II-licensed entity in the same year, further expanding its service capabilities.
Erald Ghoos, the CEO of OKX Europe, commented on the recent acquisition of the Payment Institution license, emphasizing that this achievement ensures that all associated products operate with full compliance. He expressed confidence that Europe has opted for clarity in digital asset regulation and noted that while stablecoins can enhance cross-border efficiencies and mitigate payment friction, such benefits can only be realized within a robust regulatory framework.
The new license will encompass a variety of offerings, including OKX Pay and the OKX Card, which empower users to spend their crypto assets and stablecoins. The OKX Card, launched in late January, notably supports stablecoins such as Circle’s USDC and the Paxos-issued Global Dollar, further enhancing the utility of digital assets for consumers.
