Malta’s Financial Intelligence Analysis Unit (FIAU) has imposed a fine of €1.1 million on crypto exchange OKX for failing to comply with the country’s Anti-Money Laundering (AML) regulations.
According to a recent Bloomberg report, the Maltese watchdog stated in a public notice that OKX failed to properly assess the money laundering risks associated with the products it offered. The penalty follows an on-site compliance examination in April 2023 that uncovered what authorities called “serious” and “systematic” violations.
The FIAU revealed that OKX neglected to perform Customer Risk Assessments (CRA) on nearly 50% of the reviewed client files. Additionally, the exchange reportedly failed to monitor transactions properly—some totaling over $20 million—raising significant red flags for regulators.
“The Company was found to have failed to carry out a CRA upon establishing a business relationship for around 50% of the customer files reviewed,” the FIAU noted.
OKX Responds
A spokesperson for OKX told Bloomberg that the exchange had already taken “remedial action” voluntarily and implemented a comprehensive compliance overhaul.
“Over the past two years, we have implemented a comprehensive compliance program, including technology upgrades, enhanced monitoring, and robust remediation efforts,” the spokesperson added.
This follows OKX’s pre-authorization license under the Markets in Crypto-Assets (MiCA) framework, obtained in January. The license allows the exchange to legally offer services to over 400 million users from its European base in Malta.
Ongoing Legal Troubles
This fine is only the latest in a growing list of regulatory challenges facing the exchange. On March 31, the Thailand Securities and Exchange Commission filed a complaint against OKX for operating without a license and failing to meet Know Your Customer (KYC) and AML obligations.
Earlier in March, European regulators launched an investigation into OKX after it was allegedly used to launder part of the $1.5 billion stolen from Bybit. OKX has strongly denied any wrongdoing.
Just days later, OKX suspended its decentralized exchange aggregator, citing an attempted cyberattack by North Korea’s Lazarus Group aimed at exploiting its DeFi services.
For more updates on OKX and regulatory trends in crypto, visit TheCoinInfo.
