Malta Fines OKX 1.1 Million Euros for AML Failures

Malta’s Financial Intelligence Analysis Unit (FIAU) has imposed a fine of 1.1 million euros ($1.2 million) on OKX’s European arm, Okcoin Europe, for multiple anti-money laundering (AML) compliance failures. The penalty was announced on April 3, following a compliance examination conducted in 2023. The FIAU identified several deficiencies in OKX’s business risk assessment (BRA) methodology, which hindered the exchange’s ability to properly evaluate and manage money laundering risks associated with cryptocurrency mixers, privacy coins, stablecoins, and tokens on decentralized exchanges.

The regulator also expressed concerns about OKX’s exposure to other jurisdictions, emphasizing the need to consider potential money laundering risks from the sources of customer funding, not just the location of customers. In one instance, the FIAU found that OKX had neglected to evaluate over $20 million worth of financial transactions. Despite these failures, the FIAU acknowledged that OKX has made progress in improving its AML policies over the past 18 months. However, the regulator stated that it “could not ignore” the company’s compliance failures from 2023, “some of which were deemed to be serious and systematic.”

OKX received a Markets in Crypto-Assets (MiCA) license in January 2025, making it one of the first crypto exchanges to obtain this license through its Malta hub. This development underscores that receiving a MiCA license does not exempt companies from accountability for past compliance failures. An OKX spokesperson stated that the exchange remains focused on building a secure, transparent, and compliant platform for its users worldwide, but did not comment on whether the exchange admitted to past wrongdoing.

In addition to the fine from Malta, OKX faces other regulatory challenges. In March, it was reported that European Union regulators were investigating OKX over its potential role in facilitating the laundering of funds from a Bybit hack. Bybit CEO Ben Zhou claimed that OKX’s Web3 proxy allowed hackers to launder roughly $100 million from a $1.5 billion hack that occurred in February 2025. OKX denied these claims, stating that there were no ongoing investigations by EU authorities. Furthermore, OKX reportedly hired former New York Governor Andrew Cuomo to advise it over a federal criminal investigation that led to a $505 million penalty payment in the US. In January 2024, OKCoin Europe reached a settlement with the Malta Financial Services Authority (MFSA), resulting in a separate fine of €304,000. As part of this settlement, the company agreed to appoint an independent third-party service provider to evaluate its governance and compliance arrangements.

The recent actions by Malta’s FIAU highlight the increasing regulatory pressures that cryptocurrency exchanges face in Europe. They underscore the importance of maintaining comprehensive AML processes to prevent financial crime as the industry matures. The fine serves as a reminder to other exchanges that compliance with AML regulations is crucial, and past failures can result in significant penalties, even after obtaining regulatory licenses. The situation also emphasizes the need for exchanges to continuously improve their AML policies and procedures to meet the evolving regulatory landscape.