OKX founder alleges Binance's EU license push is for regulatory arbitrage

Star Xu, founder of the crypto exchange OKX, which has Chinese roots, has argued that Binance's renewed effort to obtain a Markets in Crypto-Assets (MiCA) license in the European Union is driven by an intent to engage in regulatory arbitrage—exploiting countries with laxer regulations. Writing on X, Xu pointed to a similar case in the U.K. in 2022, where Binance's attempt was ultimately blocked by the Financial Conduct Authority (FCA). He stated that the issue is not about obtaining a license in a specific country or hiring thousands of compliance personnel. The key, he explained, is whether compliance is genuinely embedded in the organization's culture and decision-making processes. Xu warned that a compliance framework can become a mere formality if the department lacks sufficient decision-making authority and access to information, or if it is sidelined for raising concerns about sanctions, anti-money laundering (AML), or market integrity. He concluded that genuine compliance stems from a commitment to governance, transparency, and accountability, not from the size of the workforce, adding that regulators assess actual results, not organizational charts.