EU authorities launch investigation into 'Malta MiCA Law'…OKX and others targeted

JOON HYOUNG LEE

Summary

The European Securities and Markets Authority reported that it has launched an investigation related to the application of the MiCA law in Malta.
It was revealed that the global exchange OKX agreed on a fine with the U.S. Department of Justice for violating anti-money laundering laws immediately after obtaining preliminary approval in Malta.
The Peer Review Committee pointed out that Malta's licensing procedures required greater thoroughness and more time.

The European Union (EU) regulatory authorities have launched an investigation into Malta's MiCA law application.

According to CoinDesk on the 10th (local time), the European Securities and Markets Authority (ESMA) recently conducted a 'peer review' regarding the application status of Malta's MiCA law. The Peer Review Committee (PRC) under the European Securities and Markets Authority was reportedly focused on Malta's licensing procedures for certain crypto asset service providers (CASP). CoinDesk reported, "The (Peer Review Committee) report pointed out that there were still significant issues unresolved or in need of rectification even at the time of authorization."

The issue at hand concerns the global cryptocurrency exchange OKX. Previously, OKX received preliminary approval earlier this year to operate its crypto business in Malta. Immediately after receiving preliminary approval in Malta, in February of this year, OKX agreed to pay a fine of $500 million to the U.S. Department of Justice for violations related to anti-money laundering laws. CoinDesk stated, "The Peer Review Committee considered that Malta's overall approval process should have been more thorough and conducted with sufficient time."

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