The Cryptocurrency Exchange OKX has obtained a major European Union license that will allow the company to offer derivatives products across the region, which potentially open the door to a more advanced trade community segment.
On a March 12 announcementThe CEO of Europe of OKX Erd Ghoos, has confirmed that the exchange has obtained a Financial Instruments Directive (MIFID II) license. The License will allow OKX to launch derivatives trading products for institutional investors across the EU.
Source: Okx
Announcement arrives less than two months after OKX has gained a preauthorization Under the markets in the framework of crypto-assets (MICA), allowing the exchange to offer localized services throughout the 28 markets within the European economic area.
Although the licensing regimes of Mifid II and Mica are seen as auxiliary, they serve a variety of purposes. Mifid II applies to all types of financial instruments and requires crypto derivatives platforms to register.
On the other hand, Mica applies to Crypto-asset service providers Dealing with cryptocurrencies that are not considered financial instruments.
Headquartered in Seychelles, OKX is one of the largest cryptocurrency exchanges in the world based on sunny volume. According to CoinMarketCapThe exchange processes nearly $ 3.7 billion worth of trading areas on March 12.
Related: Kraken assures Mifid’s license to offer derivatives in Europe
Growing demand for derivatives
Demand for cryptocurrency derivatives increased as more institutional investors entered the digital asset space. A November report by CCDATA has placed centralized crypto derivatives market In nearly $ 7 trillion, which rose to 89.4% and exceeded the past peak in March of last year.
Volumes of Crypto derivatives reached all times high in the fourth quarter of 2024. Source: Ccdata
A February 2024 report Ey Predicting that the evolution of decentralized finances (DEFI) will continue to cultivate crypto derivatives markets. The report said:
“Despite high-profile crypto firm losses in 2022 crypto contraction, which led to increased calls for greater crypto assets industry regulations, including the derivatives-trading sector, it is hoped that the Crypto derivatives market will continue to grow and will change the launch of new products that respond to the investment in the marketplace.”
When Kraken seized the Mifid license this past month, it mentioned Europe as “one of the most active regions for Crypto derivatives trading.”
Although the trading of the derivatives is not only defined, CME GROUP Europe is called the second largest cryptocurrency economy, providing nearly 18% of global transactions.
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