Malta’s Financial Intelligence Analysis Unit (FIAU) has fined OKX €1.1 million ($1.2 million) for anti-money laundering (AML) compliance failures, marking one of the most significant penalties in the cryptocurrency sector.
The fine stems from an April 2023 investigation that revealed deficiencies in OKX’s risk assessment processes and its ability to mitigate money laundering risks effectively. This latest regulatory action underscores Malta’s strict enforcement of financial compliance laws in the crypto industry.
The regulatory environment for cryptocurrency exchanges has intensified globally, with authorities like the U.S. Securities and Exchange Commission (SEC) ramping up enforcement actions against non-compliant entities. In this context, Malta’s actions align with broader efforts to bring transparency and accountability to the crypto market. However, Commissioner Hester Peirce of the United States Securities and Exchange Commission (SEC) has indicated that the current regulatory framework may exclude numerous memecoins from the agency’s purview.
This is not the first time OKX has faced scrutiny in Malta. In March 2024, the Malta Financial Services Authority (MFSA) imposed a €304,000 ($329,000) penalty on OKX’s OKCoin Europe subsidiary for failing to comply with local virtual asset regulations under Article 41 of the Virtual Financial Assets Act. That settlement included a “goodwill” payment and required OKX to appoint an independent third-party service provider to review its governance arrangements. These prior failings highlight a pattern of compliance challenges for OKX in Malta.
The FIAU acknowledged that OKX has significantly improved its AML policies over the past 18 months. However, the authority stated it “could not ignore” the company’s past compliance failures from 2023, “some of which were deemed to be serious and systematic.” In January 2025, OKX became one of the first cryptocurrency exchanges to secure a license under Europe’s Markets in Crypto-Assets (MiCA) regulation through its Malta hub.
Bloomberg reported in March that EU regulators were investigating OKX for laundering $100 million in funds from the Bybit hack. Following this news, a $1.2 million penalty was issued in Malta. Ben Zhou, the CEO of Bybit, previously alleged that OKX’s Web3 proxy was exploited by hackers to launder approximately $100 million, equivalent to 40,233 Ether (ETH), stolen from the $1.5 billion hack that took place in February.
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