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Malta Regulator Fines OKX $1.2M for Past AML Compliance Failures
The Financial Intelligence Analysis Unit (FIAU) of Malta has slapped a hefty fine of €1.1 million ($1.2 million) on Okcoin Europe, the European arm of cryptocurrency exchange OKX, for non-compliance with anti-money laundering (AML) regulations.
Despite recent improvements in its AML policies over the past 18 months, the FIAU deemed it essential to hold the company accountable for its past failures. This development demonstrates that even after obtaining a license under Europe’s new Markets in Crypto-Assets (MiCA) regulation, exchanges are not immune from accountability for past non-compliance.
During an examination carried out in 2023, the FIAU identified numerous AML deficiencies at OKX. These included some serious and systematic failures. The regulator has emphasized that it could not ignore these past transgressions, despite efforts made to rectify them since then.
Some of the key issues cited by the FIAU include inadequate customer due diligence, insufficient monitoring of transactions, and a lack of effective reporting of suspicious activities. These lapses have put the entire cryptocurrency ecosystem at risk of financial crime and fraud.
It is worth noting that OKX has disputed allegations that it played a role in facilitating the laundering of $100 million in funds stolen during a Bybit hack. The company has categorically denied these claims, stating that they are spreading misinformation. Bybit’s CEO had earlier alleged that hackers were able to launder roughly $100 million (40,233 Ether) from the February 2025 hack through OKX’s Web3 proxy.
The recent actions by the FIAU serve as a stark reminder of the increasing regulatory pressures faced by cryptocurrency exchanges in Europe. These developments underscore the importance of maintaining comprehensive AML processes to prevent financial crime as the industry continues to mature.
OKX has maintained that it will continue to focus on building a secure, transparent, and compliant platform for its users worldwide, despite the setback. The company remains under scrutiny from multiple regulatory bodies amid investigations into alleged wrongdoing.
In related news, OKX has hired former New York Governor Andrew Cuomo as an advisor in connection with a federal criminal investigation that led to a $505 million penalty payment in the US. Additionally, OKCoin Europe reached a separate settlement with the Malta Financial Services Authority (MFSA) in January 2024, resulting in a €304,000 fine and the appointment of an independent third-party service provider to evaluate its governance and compliance arrangements.
The FIAU’s move highlights the ever-growing need for cryptocurrency exchanges like OKX to maintain impeccable AML records and processes.
Source: https://blockonomi.com/malta-regulator-fines-okx-1-2m-for-past-aml-compliance-failures/
