OKX’s Europe firm—also called OKCoin Europe, a subsidiary of crypto change OKX—was fined 1.05 million euros ($1.2 million) by Malta’s monetary watchdog on Thursday for breaching the nation’s cash laundering guidelines.
The Monetary Intelligence Evaluation Unit (FIAU) mentioned the corporate didn’t assess the cash laundering and financing of terrorism dangers emanating from the merchandise it presents and had violated elements of the nation’s Prevention of Cash Laundering and Financing of Terrorism Laws.
“Regulatory compliance is a prime precedence for OKX, and we stay dedicated to assembly and exceeding international regulatory requirements,” OKX mentioned in an announcement.
The corporate additionally mentioned it had addressed gaps recognized in its compliance framework following the authority’s 2023 assessment. Within the new discover, FIAU additionally counseled the corporate on making vital enhancements over the previous 18 months.
OKX secured the coveted Markets in Crypto Belongings license (MiCA) from Malta earlier this 12 months, which is able to allow it to supply crypto companies throughout the European Union.
“The corporate was anticipated to evaluate the character of dangers prevalent within the companies it was providing,” the authority mentioned in its discover.
FIAU mentioned the change ought to assess dangers tied to the usage of stablecoins, mixers that obscure the origins of transactions, privateness cash, tokens designed for anonymity, and tokens on decentralized exchanges.
OKX just lately quickly suspended its decentralized change aggregator following experiences that European regulators had been the way it had been used to launder funds from a latest hack of the Bybit change.
Bloomberg first reported the story.