OKX Faces €1 Million Fine from Malta Over Compliance Failures
OKX, one of the prominent crypto exchanges, is once again facing regulatory challenges, this time from Malta.
The country’s Financial Intelligence Analysis Unit (FIAU) has imposed a hefty fine of €1.054 million (approximately $1.155 million) on the platform for multiple compliance lapses, including inadequate assessment of risks related to money laundering and terrorism financing.
Following an investigation conducted in 2023, the FIAU reported that OKX had failed to carry out reliable customer risk assessments (CRAs) for a significant portion of its user base. According to the regulator, nearly half of the customer files reviewed lacked a proper CRA at the beginning of their business relationship with the exchange. OKX maintained that it conducted CRAs during the onboarding process, but evidence suggested that many clients had already deposited substantial amounts before the assessments took place, sometimes several months after registration.
Despite acknowledging recent improvements made by OKX over the past 18 months, the FIAU considered the company’s past compliance failures severe enough to warrant the administrative fine. The watchdog described the violations as both “serious and systematic.”
Earlier this year, OKX secured its EU Markets in Crypto Assets (MiCA) license in Malta. This regulatory framework, which took effect in December, aims to tighten oversight of the crypto sector by implementing rules related to consumer protection, financial crime prevention, and environmental considerations. Under MiCA, stablecoin issuers are now required to maintain sufficient liquid reserves and are supervised by the European Banking Authority.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is passionate about questions of meaning. He is a fluent German speaker as well as He has been in the crypto space for more than three years and has an eye for spotting emerging trends in the world of digital currencies. Whether providing in-depth analysis or reporting on all topics on a daily basis, his deep understanding and enthusiasm for what he does makes him a valuable addition to the team.
