Offshore exchange OKX has elevated its U.S. compliance team to the top priority within the organization. This move comes in response to increased regulatory scrutiny on cryptocurrency exchanges regarding anti-money laundering practices. OKX's restructuring is in line with a broader trend in the industry where regulatory bodies are becoming more stringent in their compliance requirements.

To address the rising concerns over regulatory risks associated with offshore exchanges, OKX recently made changes to its European offerings by removing USDT and implementing a freeze on USDT assets in partnership with Tether.

The global chief compliance officer of the platform has stepped down from his role after just six months. Patrick Donegan was responsible for leading OKX's anti-money laundering efforts, overseeing a team of 300 employees. According to his LinkedIn profile, Donegan's tenure at the exchange spanned from August 2023 to January 2024.

The U.S. government has been actively cracking down on offshore exchanges due to money laundering apprehensions. Recently, the U.S. Department of Justice pressed criminal charges against KuCoin and its co-founders for failing to comply with anti-money laundering regulations. Binance also faced legal action last year, resulting in one of the largest criminal indictments in the industry's history and a record $4 billion settlement.

For additional information, see: Investors withdraw $350m worth of ETH, USDT, USDC from KuCoin