OKX has secured a Payments Institution (PI) license from Malta's Financial Services Authority (MFSA), giving the exchange a critical third regulatory authorization in Europe and clearing the way for its stablecoin payment products to operate on fully compliant footing across the European Economic Area. The license, issued on February 11, 2026, enables OKX Pay and the Mastercard-linked OKX Card to process stablecoin-based payments under both the Markets in Crypto-Assets Regulation (MiCA) and the Second Payment Services Directive (PSD2).
Malta Becomes OKX's European Regulatory Hub
The PI license is the third major authorization OKX has obtained through its Malta hub. The exchange first secured a MiCA license from the MFSA in January 2025, followed by a MiFID II-licensed entity for derivatives trading in March 2025. The PI license now covers payment services, completing a regulatory trifecta that few crypto exchanges can match in Europe.
Under updated PSD2 rules, any crypto-asset service provider (CASP) offering payment services involving stablecoins, which are legally classified as electronic money tokens (EMTs), must hold either a PI or Electronic Money Institution (EMI) authorization. Without it, products like the OKX Card and OKX Pay would not be able to legally facilitate stablecoin-to-fiat conversions at the point of sale across EU member states.
"Securing a Payment Institution license ensures that these products operate on a fully compliant footing," said Erald Ghoos, CEO of OKX Europe. He added that "stablecoins can meaningfully modernize money, improving cross-border efficiency and reducing friction in payments, but only if built within strong regulatory guardrails."
USDC and USDG at Merchants Across 28 Countries
The license supports two specific stablecoins for payment processing: Circle's USDC and the Paxos-issued Global Dollar (USDG). Both are dollar-denominated stablecoins that have secured regulatory recognition under the MiCA framework, making them eligible for payment use within the EEA.
The OKX Card, which launched in late January 2026 through a partnership with Mastercard, allows users to spend selected stablecoins at any merchant that accepts Mastercard. The crypto-to-fiat conversion happens within a compliant framework at the point of sale, meaning the merchant receives euros (or local currency) while the user's stablecoin balance is debited.
This is a meaningful step beyond the typical exchange-linked debit card model. Most crypto cards require users to pre-convert crypto to fiat before spending. The OKX Card's stablecoin payment flow, now backed by a PI license, allows direct stablecoin spending with conversion handled at the network level. For users who hold USDC or USDG as their primary store of value, this eliminates an extra step and reduces the window of price exposure during conversion.
The 28-country EEA passporting means the card and OKX Pay are available across all EU member states plus Iceland, Liechtenstein, and Norway without requiring separate licenses in each jurisdiction.
Why the March 2026 Deadline Matters
The timing of this license is not coincidental. New EU rules taking effect in March 2026 will tighten requirements for crypto payment providers. CASPs that have not obtained proper PI or EMI authorization by that deadline will face restrictions on offering stablecoin payment services within the EEA.
OKX's early compliance gives it a competitive advantage. While rivals scramble to secure equivalent authorizations before the cutoff, OKX's payment products are already operating under the new framework. This is particularly significant given that eurozone finance ministers have been actively discussing strategies to strengthen the euro's global position through euro-denominated stablecoins, signaling that regulatory clarity for stablecoin payments is a priority at the highest levels of EU governance.
For context, OKX Ventures recently backed STBL, a stablecoin issuance platform, suggesting the exchange is not just building payment rails but also investing in the infrastructure layer that produces the stablecoins flowing through those rails.
What This Means for OKX Card Holders
For current and prospective OKX Card holders in Europe, the PI license translates to several practical benefits. First, the card's stablecoin spending features now carry the same regulatory protections as traditional payment instruments under PSD2. This includes dispute resolution rights, transaction limits, and consumer safeguards that were previously associated only with bank-issued cards.
Second, the license reduces counterparty risk. A PI-licensed entity is subject to ongoing supervision by the MFSA, including capital adequacy requirements and client fund segregation rules. For users who remember the Wirecard collapse, where card programs went dark overnight because the underlying payment processor lost its license, this distinction matters.
Third, the USDC and USDG support means users are not locked into a proprietary token ecosystem. Both stablecoins are widely available across DeFi protocols and centralized exchanges, giving users flexibility in how they acquire and manage their card funding. Compare this to card programs that require staking or holding a specific exchange token, where a token price drop can wipe out months of cashback gains.
It is worth noting that while the disclosed card fees may appear competitive, the full cost of spending includes Mastercard's network spread (typically 0.5-0.9%) and any crypto-to-fiat conversion spread applied at the point of sale. These layers are standard across the industry but worth factoring into any cost comparison.
The Regulatory Moat Widening Across EU Crypto
OKX's triple-license position in Malta sets a template that other exchanges will need to follow. Holding a MiCA license alone is not enough to offer the full suite of crypto financial products in Europe. Exchanges that want to offer derivatives need MiFID II authorization. Those that want to offer stablecoin payments need PI or EMI authorization. And all three must be maintained simultaneously.
This regulatory moat is expensive and time-consuming to build. It creates a natural barrier to entry that favors well-capitalized exchanges over smaller competitors. For crypto card providers specifically, the PI license requirement means that any issuer allowing users to spend stablecoins at merchants will need equivalent authorization, or partner with a PI-licensed entity.
The broader trend is clear. The EU is not banning crypto payments; it is channeling them through existing financial regulation. Exchanges that embrace this framework early, as OKX has done, will be positioned to capture the growing demand for stablecoin spending across the continent. Those that delay risk being locked out when the March deadline arrives.
Meanwhile, the White House's own crypto adviser recently told banks to stop fighting stablecoin yield and start competing, suggesting that both sides of the Atlantic are converging on a regulatory environment where stablecoins are treated as legitimate payment instruments rather than threats to the banking system.
FAQ
What is a Payments Institution license? A Payments Institution (PI) license is a regulatory authorization under the EU's Payment Services Directive that allows a company to provide payment services, including processing transactions, issuing payment instruments, and facilitating money transfers. For crypto companies, it is now required to offer stablecoin-based payment products within the EEA.
Which stablecoins can OKX Card holders spend? The OKX Card currently supports Circle's USDC and Paxos' Global Dollar (USDG) for merchant payments across the 28-country European Economic Area.
Does the OKX Card work outside Europe? The PI license and EEA passporting cover 28 countries (all EU member states plus Iceland, Liechtenstein, and Norway). The Mastercard network itself is accepted globally, but the stablecoin payment features are specifically authorized for EEA use under this license.
How does this differ from OKX's MiCA license? The MiCA license (obtained January 2025) authorizes OKX to operate as a crypto-asset service provider, covering exchange, custody, and trading services. The PI license specifically covers payment services, which is a separate regulatory category under EU law. Both are needed to offer a complete crypto card and payment product.
Overview
OKX obtained a Payments Institution license from Malta's MFSA on February 11, 2026, its third major EU regulatory authorization after MiCA (January 2025) and MiFID II (March 2025). The license enables OKX Pay and the Mastercard-linked OKX Card to process USDC and USDG stablecoin payments across 28 EEA countries under both MiCA and PSD2 frameworks. The timing is strategic: new EU rules in March 2026 will require PI or EMI authorization for any crypto provider offering stablecoin payment services. OKX's early compliance, combined with its investment in stablecoin infrastructure through STBL, positions it as one of the most regulation-ready crypto card issuers in Europe.
Recommended Reading
- White House Crypto Adviser Tells Banks to Stop Fighting Stablecoin Yield and Start Competing
- Gate CEO Lin Han Says Banks Have Lost the Existential War Against Stablecoins at Consensus Hong Kong
- Circle Prints $2.6 Billion in USDC in a Single Week as Stablecoin Supply Crosses $73 Billion
