Crypto exchange OKX has been fined €1.1 million by Malta's Financial Intelligence Analysis Unit (FIAU) for violations of anti-money laundering regulations.
Penalty Information
The FIAU stated that the penalty was imposed after an on-site compliance review in April 2023, which revealed serious and systematic failures.
FIAU Findings
The FIAU investigation found that OKX:
- Failed to appropriately assess the money laundering risks associated with its products.
- For approximately half of the files reviewed, the client skipped risk assessments during acceptance.
- There were deficiencies in transaction monitoring and external reporting.
OKX Response and Regulatory Challenges
OKX responded to the fine, stating that it has since implemented a comprehensive compliance program, including technology upgrades and enhanced monitoring. The exchange also noted that it acknowledged the FIAU’s remedial efforts. This fine adds to OKX’s growing regulatory challenges worldwide:
- February 2025: OKX's parent company settles with US authorities for over $500 million for failing to register as a money transmitter business.
- March 2025: The European Union investigates OKX’s Web3 service following reports that hackers laundered the proceeds of the $1.5 billion Bybit heist. The exchange later suspends some related services.
- March 2025: Thailand's securities regulator files a criminal complaint against OKX for operating without a license.
- January 2025: OKX was fined €304,000 by the Malta Financial Services Authority (MFSA) for undisclosed regulatory breaches.
The fine imposed on OKX highlights the importance of compliance with anti-money laundering regulations in the crypto industry and emphasizes the growing regulatory challenges faced by the exchange.
