TLDR:

Malta’s Financial Intelligence Analysis Unit (FIAU) fined OKX’s European arm €1.1 million ($1.2 million)
The penalty relates to Anti-Money Laundering violations discovered during a 2023 examination
Regulators acknowledged OKX has enhanced its compliance measures in recent months
OKX was an early recipient of a MiCA license in Europe in January 2025
The fine comes amid separate concerns about OKX’s possible connection to Bybit hack fund laundering

Malta’s Financial Intelligence Analysis Unit has imposed a €1.1 million ($1.2 million) fine on Okcoin Europe, the European subsidiary of cryptocurrency exchange OKX. The penalty follows an investigation that uncovered several Anti-Money Laundering (AML) compliance deficiencies.

The FIAU announced the enforcement action on April 3, 2025. In its statement, the regulator noted that while OKX has made progress in improving its compliance framework over the past 18 months, it could not overlook the previous violations.

These compliance shortcomings were discovered during a 2023 examination. The FIAU described them as “serious and systematic” in nature. The fine comes shortly after OKX received a license under Europe’s Markets in Crypto-Assets (MiCA) regulation through its Malta operations in January 2025.

Examination Reveals Multiple Compliance Gaps

According to the FIAU, OKX had attempted to create a business risk assessment to identify potential threats and vulnerabilities. However, regulators found major flaws in this assessment process.

These methodological problems prevented OKX from accurately evaluating money laundering risks. As a result, the exchange failed to implement necessary risk management measures.

The regulator identified several specific risk areas that OKX had inadequately addressed. These included potential threats from crypto mixing services, privacy-focused cryptocurrencies, stablecoins, and decentralized exchange tokens.

Another key concern was OKX’s exposure to jurisdictions outside Europe. The FIAU stated that despite OKX’s claim to focus only on European customers, the exchange needed to consider risks from “where the sources of the customers’ funding originated.”

Investigators discovered that OKCoin Europe had failed to properly assess over $20 million in transactions. They also found evidence of a customer whose large bank deposits were inconsistent with their stated business activities.

Company Response and Additional Issues

An OKX representative responded to the fine by saying: “With this chapter behind us, OKX remains focused on the future — continuing to build a secure, transparent, and compliant platform for our users worldwide.”

The company has taken steps to remedy the identified problems. OKCoin Europe has upgraded its AML processes and strengthened its overall compliance infrastructure. The FIAU has recognized these improvement efforts in its announcement.

This isn’t OKX’s first regulatory settlement in Malta. In January 2024, the company reached an agreement with the Malta Financial Services Authority that included a €304,000 fine. As part of this earlier settlement, OKX agreed to hire an independent third party to review its governance and compliance procedures.

The Malta fine comes during a challenging regulatory period for OKX. In March, Bloomberg published a report suggesting European Union authorities were investigating OKX’s potential involvement in money laundering related to the Bybit hack.

Bybit’s CEO claimed that OKX’s Web3 proxy was used by hackers to launder approximately $100 million from a larger $1.5 billion hack that occurred in February 2025. OKX has denied these allegations.

Reports also indicate that OKX has hired former New York Governor Andrew Cuomo as an advisor on a federal criminal investigation. This investigation led to a plea deal and a $505 million penalty in the United States.

Regulatory Implications for Crypto Industry

The FIAU’s action against OKX establishes an important precedent regarding MiCA-licensed companies. It demonstrates that obtaining a license under Europe’s new crypto regulations does not exempt companies from accountability for past violations.

The case highlights the increasing regulatory pressure on cryptocurrency exchanges operating in Europe. It emphasizes the importance of robust AML systems to detect and prevent financial crimes in the crypto sector.

Exchanges like OKX must now adapt to stricter compliance standards under frameworks such as MiCA. These requirements will likely shape the development of the European crypto market in the coming years.

The post Crypto Exchange OKX Hit with $1.2M Fine Despite MiCA License: Malta Gets Tough appeared first on CoinCentral.

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Filed under: News - @ April 7, 2025 11:19 am