Malta’s Financial Intelligence Analysis Unit (FIAU) has imposed a €1.1 million ($1.2 million) fine on OkCoin Europe Limited, the European subsidiary of cryptocurrency exchange OKX, for multiple violations of anti-money laundering (AML) regulations.

The penalty follows an in-depth regulatory review, which found that the platform failed to meet crucial compliance requirements, including inadequate customer due diligence, improper transaction monitoring, and lapses in record-keeping.

Regulatory Findings

According to the FIAU, Okcoin Europe did not properly verify the identities of some customers, leaving potential gaps in the company’s Know Your Customer (KYC) protocols. Additionally, the exchange reportedly failed to monitor transactions effectively, increasing the risk of illicit financial activities going undetected.

Authorities also cited deficiencies in how Okcoin Europe retained records, an essential requirement for compliance with AML laws. These lapses raised concerns over the company’s ability to provide authorities with complete data when investigating suspicious transactions.

The FIAU’s enforcement action is part of a broader regulatory push in Europe to tighten oversight of cryptocurrency platforms and ensure financial institutions adhere to stringent AML standards.

OKX’s Response and Industry Impact

OKX has not yet publicly commented on the fine, but the penalty adds to growing regulatory challenges for cryptocurrency exchanges operating in Europe. In recent years, financial regulators across the EU have intensified scrutiny of digital asset platforms, demanding greater transparency and compliance with anti-money laundering frameworks.

Malta, once known for its crypto-friendly policies, has increased enforcement efforts in line with European Union regulations, particularly the EU’s Anti-Money Laundering Directive (AMLD). The country’s shift toward stricter oversight signals a warning to other crypto firms that fail to meet regulatory expectations.

OKX now faces a crucial decision: accept the fine and adjust its compliance measures or challenge the ruling. 

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