OKX Penalized $1.2M by Malta for Violating Anti-Money Laundering Regulations

Key Points:

• OKX's European branch fined €1.05 million ($1.2 million) by Malta's financial regulator.

• The fine was for breaching the country's anti-money laundering regulations.

• OKX expressed its commitment to meeting global standards.

OKX's European arm, OKCoin Europe, a subsidiary of the crypto exchange OKX, was fined €1.05 million ($1.2 million) by Malta's financial regulator on Thursday for violating the country's anti-money laundering regulations.

The Financial Intelligence Analysis Unit (FIAU) stated that OKX failed to properly evaluate the risks of money laundering and terrorism financing associated with its products, violating parts of Malta's Prevention of Money Laundering and Financing of Terrorism Regulations.

In response, OKX emphasized its commitment to regulatory compliance, stating, "Regulatory compliance is a top priority for OKX, and we remain committed to meeting and exceeding global regulatory standards."

The company also noted that it had addressed the compliance gaps identified during the FIAU's 2023 review and that the authority had acknowledged significant improvements made over the past 18 months.

OKX obtained the prestigious Markets in Crypto Assets (MiCA) license from Malta earlier this year, which allows it to provide crypto services across the European Union.

The FIAU highlighted that the company was required to evaluate the risks associated with the services it provides, including the use of stablecoins, transaction-obscuring mixers, privacy coins, anonymity-focused tokens, and tokens on decentralized exchanges.

In response to regulatory scrutiny, OKX recently paused its decentralized exchange aggregator after reports emerged that European regulators were investigating its potential involvement in laundering funds from a hack of the Bybit exchange.

The story was first reported by Bloomberg.