As a significant development in the cryptocurrency market, OKX obtained the MiCA (Markets in Crypto-Assets) license on January 27, 2025. This license allows OKX to operate safely and in compliance with regulations in 30 countries within the European Economic Area (EEA), enabling it to provide services under a unified regulatory framework.
What is the MiCA License?
MiCA is a comprehensive regulation for the cryptocurrency market established by the EU. This regulation aims to clarify rules regarding the issuance, trading, and custody of crypto assets, enhancing market transparency and reliability. It also introduces a mechanism utilizing “passporting rights,” allowing companies licensed in one EU member state to operate in other countries without additional approval.
Importance of KYB (Know Your Business)
KYB stands for “Know Your Business” and is a process to verify the legitimacy and transparency of businesses. This is required as part of the MiCA regulation and contributes to preventing fraudulent activities and money laundering. The KYB process involves detailed verification of company information and business activities, contributing to the overall reliability of the market.
OKX and Pi Network Collaboration
Pi Network’s native token ‘PI’ will be listed on OKX’s spot trading market on February 20, 2025, at 8:00 AM UTC (5:00 PM Japan time). Prior to this, users will be able to deposit PI tokens starting from February 12, 2025, at 2:45 AM UTC (11:45 AM Japan time), and withdrawals will commence from February 21, 2025, at 8:00 AM UTC (5:00 PM Japan time). This listing is a significant step demonstrating Pi Network’s regulatory compliance.
Enhanced Reliability through MiCA and KYB
With OKX obtaining the MiCA license and Pi Network passing the required KYB process, market access for PI tokens will expand. Furthermore, this initiative strengthens user protection and contributes to enhancing the overall reliability of the cryptocurrency market.
Impact on the Japanese Market
Interest in the cryptocurrency market is growing in Japan, and the increased reliability of OKX due to obtaining the MiCA license may provide a sense of security to Japanese investors. Especially given the strict cryptocurrency regulations already in effect in Japan, the MiCA license, which demonstrates international regulatory compliance, will serve as a testament to the trustworthiness for Japanese users utilizing OKX’s services.
Conclusion
OKX’s acquisition of the MiCA license and its collaboration with Pi Network set a new standard in the cryptocurrency market. This will enhance overall market transparency and reliability and potentially have a positive impact on the Japanese market. Let’s continue to monitor these developments.