The Financial Intelligence Analysis Unit of Malta (FIAU) has imposed a fine of $1.2 million on Okcoin Europe, the European arm of the cryptocurrency exchange OKX, for violations of anti-money laundering (AML) regulations in 2023. Despite significant progress in improving regulatory practices over the past 18 months, the FIAU identified systematic deficiencies that cannot be overlooked.
This is reported by Finway
Deficiencies in Risk Assessment System
During the regulator’s inspection, it was found that OKX failed to “adequately assess the threats of money laundering,” which complicated the implementation of appropriate measures. Among the key risks noted were the use of cryptocurrency mixers, anonymous coins, stablecoins, and operations on decentralized exchanges.
Additionally, the regulator emphasized that OKX did not consider potential threats from foreign users and funding sources, despite its stated regional strategy. This raised concerns about compliance with AML requirements.
Licensing and Legal Investigation Situation
It is worth noting that OKX became one of the first exchanges to obtain a MiCA license in the EU through its Maltese office in January 2025. Nevertheless, it faces further challenges, as the Securities and Exchange Commission (SEC) of Thailand has filed a lawsuit against the company for providing services without a license, violating the “Emergency Decree on Digital Assets.” If found guilty, OKX’s management may face penalties, including prison sentences and substantial fines.
“OKX continues to strengthen its compliance system,” said representatives of the exchange, without commenting on the issue of admitting violations.
As a reminder, OKX previously suspended the operation of its DEX aggregator due to a hack of the Bybit platform.