Cryptocurrency exchange OKX is under regulatory scrutiny in
Europe after Maltese authorities issued a fine for violations of Anti-Money
Laundering (AML) laws.
On April 3, Malta’s Financial Intelligence Analysis Unit
(FIAU) announced that it had fined OKX’s Europe-based arm, Okcoin Europe, 1.1
million euros ($1.2 million) for multiple AML failures detected in 2023, Cointelegraph
reported.
In January 2025, OKX
received a license under Europe’s new Markets in Crypto-Assets (MiCA)
regulation. The license allows OKX to offer regulated services to over 400
digital asset users across Europe. However, the FIAU’s fine shows that the MiCA
license does not protect the company from accountability for past compliance
failures.
OKX’s 2023 AML Failures Draw Scrutiny
The FIAU said that while OKX had improved its AML policies
over the past 18 months, it could not overlook the serious and systematic
compliance failures from 2023. These issues were identified during an
examination of OKX’s business risk assessment (BRA), which failed to adequately
assess money laundering risks.
The authority highlighted deficiencies in the BRA’s
methodology, including the inability to manage risks related to cryptocurrency
mixers, privacy coins, stablecoins, and decentralized exchanges.
OKX faces new regulatory checks in Europe after being hit with a €1.1M fine by Malta’s FIAU for past AML violations. Despite recent improvements, past missteps haunt the crypto giant 🌍💸 #CryptoNow #AML #OKX pic.twitter.com/p1ubGN8VpS
— CryptoNow (@crypnw) April 4, 2025
EU Probes OKX Over Bybit Hack
The FIAU also raised concerns about Okcoin Europe’s exposure
to money laundering risks from other jurisdictions, despite the company’s
pledge to only serve European customers. The regulator emphasized the
importance of considering potential risks from the sources of customer funding.
OKX did not respond to a request for comment on whether the
exchange admitted to the violations. A spokesperson for the exchange stated
that it remains focused on “building a secure, transparent, and compliant
platform” for users worldwide.
The fine from Malta follows other reports of regulatory
investigations into OKX. In March, Bloomberg reported that EU regulators were
probing OKX over its potential involvement in laundering $100 million in funds
from the
Bybit hack. Bybit’s CEO claimed that OKX’s Web3 proxy enabled hackers to
launder a portion of the stolen funds. OKX denied the allegations, calling them
misinformation.
This article was written by Tareq Sikder at www.financemagnates.com.
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