Malta's Financial Intelligence Unit (FIAU) has imposed a $1.2 million fine on OKX due to violations of anti-money laundering (AML) regulations. This article will look into the details of this ruling, as well as other recent events concerning OKX.
Fines from FIAU for AML Violations
OKX, the European arm of the exchange, has come under scrutiny from regulators after violations were identified during inspections. Over an 18-month period, the platform significantly improved its regulatory measures, but issues such as the use of cryptocurrency mixers and anonymous coins drew FIAU's concern. The regulator pointed out that the weaknesses in the risk assessment system prevented the exchange from adequately assessing money laundering threats.
Suspension of DEX Aggregator After Hack
OKX suspended its decentralized exchange (DEX) aggregator following reports of coordinated efforts by the Lazarus Group to exploit the exchange’s services. The company noted an increase in attacks aimed at disrupting the platform and is implementing measures to prevent further issues, including a hacker address detection solution.
SEC Lawsuit Against OKX in Thailand
Thailand's Securities and Exchange Commission has filed a lawsuit against OKX for unlicensed activities. The regulator claims the platform has been offering services since October 2021 without proper authorization, charging a 0.1% commission. Nine individuals promoting the exchange on various social media platforms also face charges. If found guilty, OKX and its partners could face significant fines and prison sentences.
Recent regulatory actions, such as fines and lawsuits, highlight the importance of compliance and regulation in the cryptocurrency industry. Despite its efforts to enhance compliance, OKX faces significant challenges that could impact its reputation and business.
