TLDR:
- Malta’s Financial Intelligence Analysis Unit (FIAU) imposed a €1.1 million ($1.2 million) fine on OKX’s European arm
- The fine stems from Anti-Money Laundering (AML) compliance failures found during a 2023 examination
- OKX has “improved its AML policies” over the past 18 months according to regulators
- The exchange was among the first to receive a MiCA license in Europe in January 2025
- The fine follows separate allegations about OKX’s potential role in facilitating laundering of funds from the Bybit hack
Malta’s Financial Intelligence Analysis Unit (FIAU) has fined cryptocurrency exchange OKX €1.1 million ($1.2 million) for violations of Anti-Money Laundering laws. The penalty was imposed on Okcoin Europe, OKX’s European subsidiary, after regulators found multiple AML failures during a compliance examination in 2023.
The FIAU announced the fine on April 3, 2025. While acknowledging that OKX has improved its compliance measures over the past 18 months, the regulator stated it “could not ignore” the prior failures from 2023.
These compliance issues were described as “serious and systematic” by the Maltese authority. The timing is notable as OKX was among the first cryptocurrency exchanges to receive a license under Europe’s Markets in Crypto-Assets (MiCA) regulation through its Malta hub in January 2025.
Detailed Compliance Failures
The FIAU identified specific deficiencies in OKX’s business risk assessment methodology. These shortcomings prevented the exchange from properly assessing money laundering risks and taking necessary preventive measures.
Regulators highlighted several areas of concern. These included potential threats from cryptocurrency mixers, privacy coins, stablecoins, and tokens on decentralized exchanges.
The FIAU also noted risks related to OKX’s exposure to non-European jurisdictions. This was despite the company’s stated strategy to only serve European customers.
“Despite the company’s strategy adopted to only service European-based customers, it was essential to also consider the potential [money laundering/financing terrorism] exposure emanating from other jurisdictions,” the FIAU stated.
The regulator discovered that OKCoin Europe neglected to evaluate over $20 million worth of financial transactions. They also identified a customer whose unusually large bank deposits exceeded their reported expected operations.
Recent Controversies and Response
The Maltese fine comes amid other regulatory challenges for OKX. In March, Bloomberg reported that European Union regulators were investigating OKX over its potential role in facilitating the laundering of funds from the Bybit hack.
Bybit CEO Ben Zhou claimed that OKX’s Web3 proxy allowed hackers to launder approximately $100 million from a $1.5 billion hack that occurred in February 2025. OKX denied these allegations, stating that “Bybit’s statements are spreading misinformation.”
The Bloomberg article is misleading. Like all other major crypto exchanges, OKX provides a self-custody wallet service/swap feature that serves as an aggregator to create efficiency for the users. When Bybit got hacked, we reacted in two ways. (1) We froze associated funds moving… https://t.co/HUUmA8W2eq
— OKX (@okx) March 11, 2025
An OKX spokesperson commented on the Malta fine: “With this chapter behind us, OKX remains focused on the future — continuing to build a secure, transparent, and compliant platform for our users worldwide.”
Reports also suggest that OKX hired former New York Governor Andrew Cuomo as an advisor regarding a federal criminal investigation. This investigation resulted in OKX’s plea and a $505 million penalty payment in the United States.
Regulatory Implications
The penalty from Malta’s FIAU sets a precedent for regulators dealing with past compliance violations by MiCA-licensed companies. It demonstrates that obtaining a MiCA license does not shield firms from responsibility for previous regulatory breaches.
OKCoin Europe has taken steps to address these issues. The company has implemented AML process improvements and strengthened its compliance systems. The FIAU has commended OKCoin Europe for its proactive approach to resolving the identified deficiencies.
In January 2024, OKCoin Europe also reached a settlement with the Malta Financial Services Authority. This resulted in a separate fine of €304,000 for other regulatory issues. As part of this settlement, the company agreed to appoint an independent third-party service provider to evaluate its governance and compliance arrangements.
These actions highlight the growing regulatory pressures facing cryptocurrency exchanges in Europe. They underscore the importance of comprehensive AML processes to prevent financial crime in the rapidly evolving crypto industry.
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