• Written by: Olivia Stephanie
• Fri, 04 Apr 2025
•   United States

Crypto exchange OKX faces a 1.1 million ($1.2 million) fine from Maltese authorities for breaching the country's anti-money laundering (AML) rules. The fine, issued by Maltas Financial Intelligence Analysis Unit (FIAU), follows an on-site compliance examination in April 2023. It uncovered a series of serious and systematic failures within the exchange's operations. The FIAUs findings suggest that OKX failed to adequately assess the risks associated with its products and services. Accordingly, it raised concerns about potential money laundering activities.Compliance Shortcomings IdentifiedNotably, the FIAUs report highlighted that OKXs internal business risk assessment was insufficient in identifying potential money laundering risks. Furthermore, the examination revealed that OKX did not conduct risk assessments for about half of the client files reviewed during the compliance check. This lack of proper onboarding procedures raised alarms about the exchange's ability to detect illicit activities. In addition to these failures, the FIAU pointed out issues related to transaction monitoring and external reporting.Meanwhile, OKX has responded to the fine by emphasizing its improvements to its compliance efforts. The exchange stated that it has implemented a comprehensive compliance program over the past two years, including technology upgrades and enhanced monitoring systems. Notably, the FIAU acknowledged these efforts, noting that OKX had voluntarily taken remedial action to address the identified deficiencies.Regulatory Setbacks in Other JurisdictionsThis latest penalty from Malta adds to a series of regulatory challenges OKX faces in various regions. In late February, the Seychelles-based parent company of OKX agreed to pay over $500 million to settle allegations with U.S. authorities for failing to register as a money transmitting business. In addition, Thailands securities regulator filed a criminal complaint against OKX for operating without a license in the country. Notably, OKX's compliance struggles have not gone unnoticed by other industry players. Bybit CEO Ben Zhou recently accused OKX of enabling hackers to launder $100 million from a February 2025 hack involving a $1.5 billion breach. However, OKX has firmly denied the allegations. The exchange has also criticized Bybits statements as misinformation.

OKX Faces 1 Million Fine Over AML Breaches in Malta

Crypto exchange OKX faces a 1.1 million ($1.2 million) fine from Maltese authorities for breaching the country's anti-money laundering (AML) rules. The fine, issued by Maltas Financial Intelligence Analysis Unit (FIAU), follows an on-site compliance examination in April 2023. It uncovered a series of serious and systematic failures within the exchange's operations. The FIAUs findings suggest that OKX failed to adequately assess the risks associated with its products and services. Accordingly, it raised concerns about potential money laundering activities.Compliance Shortcomings IdentifiedNotably, the FIAUs report highlighted that OKXs internal business risk assessment was insufficient in identifying potential money laundering risks. Furthermore, the examination revealed that OKX did not conduct risk assessments for about half of the client files reviewed during the compliance check. This lack of proper onboarding procedures raised alarms about the exchange's ability to detect illicit activities. In addition to these failures, the FIAU pointed out issues related to transaction monitoring and external reporting.Meanwhile, OKX has responded to the fine by emphasizing its improvements to its compliance efforts. The exchange stated that it has implemented a comprehensive compliance program over the past two years, including technology upgrades and enhanced monitoring systems. Notably, the FIAU acknowledged these efforts, noting that OKX had voluntarily taken remedial action to address the identified deficiencies.Regulatory Setbacks in Other JurisdictionsThis latest penalty from Malta adds to a series of regulatory challenges OKX faces in various regions. In late February, the Seychelles-based parent company of OKX agreed to pay over $500 million to settle allegations with U.S. authorities for failing to register as a money transmitting business. In addition, Thailands securities regulator filed a criminal complaint against OKX for operating without a license in the country. Notably, OKX's compliance struggles have not gone unnoticed by other industry players. Bybit CEO Ben Zhou recently accused OKX of enabling hackers to launder $100 million from a February 2025 hack involving a $1.5 billion breach. However, OKX has firmly denied the allegations. The exchange has also criticized Bybits statements as misinformation.