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Regulators allegedly questioned whether OKX's decentralized trading and self-custodial wallet services should be exempt from MiCA during the European Securities and Markets Authority's (ESMA) March 6 meeting, citing their alleged integration with its centralized exchange and referencing their terms of use.

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National watchdogs from the European Union’s 27 member states discussed the issue at a meeting hosted by the European Securities and Markets Authority’s Digital Finance Standing Committee on March 6, the people said, asking not to be named because the deliberations are confidential. OKX is subject to the EU’s new Markets in Cryptoassets, or MiCA, regulations. Regulators are zeroing in on OKX’s Web3 service, which the company markets as a decentralized-finance platform and self-custodial wallet that gives crypto traders access to various exchanges and blockchains, two of the people said. The hackers, which authorities have linked to North Korea, laundered about $100 million of crypto they stole through the Web3 platform, according to Bybit. At issue for regulators is whether the Web3 platform is encompassed by MiCA, and if so, what potential penalties to impose on OKX, the people said.
While fully decentralized platforms are exempt from MiCA rules that took full effect at the end of 2024, regulators from countries including Austria and Croatia said at the meeting that OKX’s Web3 service should be encompassed by the bloc’s rules, according to the people. License “Passporting” A presentation given at the gathering by one national regulator said the user interface for swapping tokens and connecting a Web3 wallet is directly integrated into OKX’s website, and highlighted that the platform’s terms of use clearly identifies an OKX Singapore entity as its main operator, one of the people said. The Web3 wallet service isn’t related to OKX SG Pte, the entity that’s regulated by Singapore’s central bank, the company said. The presentation concluded that the Web3 platform clearly falls within the scope of MiCA, the person added. It also called for regulators to discuss whether the incident represents a violation of sanctions on North Korea, according to the person.

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