OMG! Here's the Scoop on OKX's Troubles with Malta's Money Laundering Biz
Maltese Regulatory Authority Imposes Fine of $1.2 Million on OKX for Previous Inadequacies in Anti-Money Laundering Compliance.
Get all the juicy details on OKX's run-in with the Financial Intelligence Analysis Unit (FIAU) in Malta for는 defeating anti-money laundering (AML) regulations. Buckle up as we dive into this wild rodeo!
The Lowdown
On April 3, Malta's FIAU popped a massive fine of 1.1 million euros ($1.2 million) on Okcoin Europe, OKX's European subsidiary. This hefty fine came after an AML examination in 2023 uncovered a litany of failures on OKX's part to follow AML rules.
But let's not forget that OKX had already snagged a license under Europe's Markets in Crypto-Assets (MiCA) regulation through its Malta hub way back in January 2025. Unfortunately for OKX, receiving a fancy new license doesn't grant a free pass on avoiding accountability for past compliance failings.
Compliance Catastrophes Uncovered
The FIAU discovered that OKX's business risk assessment (BRA) was a complete mess, with numerous deficiencies in its methodology. This incompetence meant OKX couldn't properly evaluate the money laundering risks it faced. These risks included threats from cryptocurrency mixers, privacy coins, stablecoins, tokens on decentralized exchanges, and unchecked exposure to other jurisdictions.
In one unfortunate case, the FIAU stumbled upon a customer who had deposited a staggering amount of cash far beyond their expected operations. And get this: OKX failed to evaluate more than $20 million worth of financial transactions!
Time for a Change?
The FIAU admitted that OKX has made strides in improving its AML policies in the last 18 months. However, the regulator couldn't ignore the company's past compliance snafus, some of which were considered serious and systemic.
When reached for comment, an OKX spokesperson was tight-lipped on whether the exchange admitted past wrongdoing. All they could say was, "With this chapter behind us, OKX remains focused on the future - continuing to build a secure, transparent, and compliant platform for our users worldwide."
More Trouble Brewing
The fine from Malta comes amidst a shitstorm of other regulatory challenges for OKX. In March, Bloomberg reported that European Union regulators were sniffing around OKX to determine if it played a part in laundering funds from a Bybit hack.
Bybit CEO Ben Zhou previously cried wolf, claiming that OKX's Web3 proxy allowed hackers to launder approximately $100 million (40,233 Ether) from a $1.5 billion hack that occurred in February 2025. OKX flat-out denied these claims, insisting, "Bybit's statements are spreading misinformation,” and that there were no ongoing investigations by EU authorities.
Adding insult to injury, OKX allegedly enlisted former New York Governor Andrew Cuomo as an advisor to help navigate a federal criminal investigation resulting in a $505 million penalty payment in the U.S.
In other news, OKCoin Europe settled with the Malta Financial Services Authority (MFSA) back in January 2024, facing a separate fine of €304,000. As part of this settlement, OKCoin Europe agreed to bring in an independent third-party service provider to assess its governance and compliance arrangements.
The Bottom Line
Malta's FIAU's action against OKX underscores the mounting regulatory pressures faced by cryptocurrency exchanges in Europe. As the industry grows, it's crucial for companies to maintain robust AML measures to prevent financial shenanigans. Keep your eyes peeled for more updates on this ongoing drama!
Fun Fact: Did you know that Malta is nicknamed "Blockchain Island" due to its pro-cryptocurrency legislation and supportive environment for fintech and blockchain startups?
- The troubling incident between OKX and Malta's FIAU over AML regulations indicates a need for enhanced finance and banking-and-insurance practices in the cryptocurrency industry.
- Despite receiving a license under Europe's MiCA regulation, OKX's compliance failures have been exposed in the Malta FIAU's investigations, highlighting the importance of adhering to AML rules in the cryptocurrency industry.
