Key Takeaways
- OKX crypto exchange faced a $1.2 million fine in Malta for violating AML guidelines.
- The exchange failed to impose adequate measures to prohibit money laundering activities.
- The $1.2 million fine comes just over a month after facing a $500 million penalty in the US for similar AML violations.
The Malta regulatory body fined global crypto exchange OKX $1.2 million for violating the country’s anti-money laundering regulations.
The latest fine for the crypto exchange comes amid growing regulatory troubles across Europe and America.
OKX Fined $1.2 Million for 6 AML Violations
According to a public notice issued by Malta’s Financial Intelligence Analysis Unit, crypto exchange OKX violated the country’s six AML guidelines.
The regulatory body imposed €1.1 million ($1.2 million) on OKX’s local subsidiary based on an onsite compliance examination in April 2023. The AML violations were “deemed to be serious and systematic.”
The regulatory body noted that at the time of the compliance inspection in 2023, the exchange had compiled a business risk assessment (BRA) to identify its threats and vulnerabilities.
However, the authorities found deficiencies within the company’s BRA methodology and noted:
“Some of the deficiencies in the company’s BRA system made it unable to assess the risks of ML/FT properly it was exposed to and to adequately apply the required mitigating measures to manage them.”
This is not the first instance when the exchange was found in violation of the compliance requirements.
OKX’s Growing Compliance Issue
The $1.2 million fine in Malta for AML regulation violation comes just over a month after OKX was slapped with a $500 million penalty in the U.S.
The operator of the OKX cryptocurrency exchange has admitted to breaking anti-money laundering (AML) laws and agreed to pay off $504 million in penalty.
Aux Cayes FinTech, the operator of the OKX exchange, admitted to the violations and agreed to pay the Department of Justice a hefty penalty.
The exchange also found itself in hot waters in Europe last month after the Bybit exchange hack. It was forced to shut down its DEX aggregator platform after hackers behind the Bybit exploit used its DEX services to launder over $100 million of stolen funds.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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