Malta Fines OKX Crypto Exchange $1.2 Million for AML Violations
Malta's Financial Intelligence Analysis Unit (FIAU) has fined Okcoin Europe, the European subsidiary of cryptocurrency exchange OKX, 1.1 million euros ($1.2 million) for violations of Anti-Money Laundering laws, according to an announcement on April 3.
The fine comes despite acknowledgment from Maltese authorities that OKX has made substantial improvements to its compliance procedures over the past 18 months. However, the FIAU stated it "could not ignore" the company's past compliance failures from 2023, some of which were described as "serious and systematic."
OKX received its Markets in Crypto-Assets (MiCA) license through its Malta hub in January 2025, making it one of the first cryptocurrency exchanges to operate under Europe's new regulatory framework for digital assets.
The penalty follows recent reports that European Union regulators are investigating OKX for allegedly helping launder funds stolen during the Bybit hack. According to Bloomberg's March report, authorities are looking into OKX's role in processing potentially illicit funds.
Bybit CEO Ben Zhou has previously claimed that OKX's Web3 proxy allowed hackers to launder approximately:
- 40,233 Ether (worth about $100 million) from the $1.5 billion Bybit hack that occurred in February
This Malta fine represents another regulatory challenge for OKX as it attempts to establish legitimate operations in Europe under the new MiCA framework while addressing past compliance issues.
The exchange now faces increased scrutiny from multiple European regulatory bodies as it works to maintain its recently acquired regulatory status while addressing both past and present compliance concerns.
Meanwhile, the broader crypto regulatory landscape continues to evolve in the United States. South Carolina recently dismissed its lawsuit against Coinbase over staking services, joining Vermont in dropping charges that alleged the exchange offered unregistered securities. This comes as South Carolina considers legislation that would allow the state to invest in cryptocurrency reserves.
