OKX Identifies France as Regional Hub, Seeks Service Provider License
The Seychelles-based crypto exchange OKX confirms applying for France’s operating license as it considers the country the European regional hub. OKX is set to pursue its long-term objective of establishing a regional hub for its European operations.
OKX Pursue Service Provider License in France
OKX plans to engage 100 individuals by 2026 for its France operations. The crypto exchange is joining over 70 companies that won regulatory approval to operate in France. As such, the OKX executives admitted the firm is seeking registration to operate as a digital asset service provider (DASP).
Tim Byun, who heads OKX global government relations, revealed that securing the DASP license will facilitate its pursuit of establishing a physical presence in France. Joining France is perceived as a gateway for OKX into Europe.
The move is viable, considering France is the second-largest economy in the European Union. Byun believes France as harboring untapped potential considering that its crypto trading volume ranks second globally.
OKX’s quest for DASP registration in France mirrors Binance’s move in 2022, where it identified the country as an access point to the European Union market. Binance chief executive Changpeng Zhao confirmed the world leader in transaction volume had engaged 150 employees for its Paris office. Contrastingly, OKX aspires to employ 100 within three years, where 30 would hire in 2023.
OKX Prioritizes Compliance with AMF and MiCA Requirements
Byun admitted that compliance with the rigorous registration requirements outlined by Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR) would take six months. The registration process involves verifying if the company complies with the antimony laundering standards and solid management principles.
Seeking a DASP license is timely for OKX, given the unanimous approval of Markets in Crypto Assets regulation (MiCA) by 27 EU member states. Byun notes that the law permits crypto firms with approval to operate in a single country to offer services across the entire bloc.
The AMF indicated in April that registered crypto firms with existing operations in France would attain fast-tracked MiCA licensing. However, the firms should comply with consumer safeguards, financial stability, and governance rules.
Byun confessed that the decision by OKX to seek AMF’s registration comes weeks after OKX France’s incorporation in April. It portrays OKX’s devotion to expanding its European presence, where France is singled out as a critical hub. Garnering an AMF license will help OKX offer its service suite to France customers.
Will French License Guarantee Entry into EU Market?
Byun lauds the French DASP regulation as delivering a secure regulatory framework sought by digital asset service providers. OKX is set to complement the registered DASP to nurture the French crypto ecosystem. Besides supporting the local regulatory framework, OKX France plans to nurture awareness as MiCA onboarding is set for 2024 across the EU block.
France’s suitability is beyond the transparent regulatory framework. Instead, the country hosts a huge concentration of crypto enthusiasts and expert traders who would expedite OKX development alongside qualified personnel.
Minister Jean-Noël Barrot, who oversees digital transitioning and telecommunication, expressed gratitude for OKX’s decision to select France as its gateway to expand operations in Europe. He added that the pursuit of AMF approval by OKX affirms the country’s aspirations of becoming a global leader in Web3 technologies. The country’s objective has been championed by President Macron and assisted by Minister Bruno Le Maire since 2017.
Byun considers that the deep expertise portrayed by the French authorities in crypto assets would benefit OKX with a consistent and robust approach beyond the licensing process.
Minister Barrot interpreted OKX’s application for a DASP license as a testament to the sound policies formulated by the government to nurture resilience and a safe, innovative climate to optimize crypto-asset potential. He appreciated the efforts to transform France into a global leader in Web3 innovation and a digital-based economy.
OKX Explosive Expansion
Pursuing France’s DASP license mirrors the March move to Hong Kong, where OKX sought the virtual asset service provider license. Recently, it revealed licensing in the Bahamas and securing a provisional VARA license approval in Dubai.
OKX president Hong Fang said the crypto exchange is dedicated to broadening its reach and participation in European crypto regulations. He added that DASP approval in France is critical to accomplish such an objective.
Fang expressed excitement to further the collaboration with AMF as a platform to extend product portfolio usage in France. As such, he indicated that OKX strives to present a secure and efficient approach for individuals and businesses to exchange value throughout France.
As a Web3-leader, Fang indicated that OKX seeks to offer amazing projects as it aims to exploit potential in France and EU markets.
Editorial credit: T. Schneider / Shutterstock.com
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