Okcoin Europe Fined $1.2 Million for AML Violations in 2023

Malta's Financial Intelligence Unit (FIAU) has imposed a $1.2 million fine on Okcoin Europe, the European division of the cryptocurrency exchange OKX. This penalty was issued due to the platform's violations of anti-money laundering (AML) regulations in 2023. Despite significant improvements in regulatory compliance over the past 18 months, the FIAU identified systematic violations that could not be overlooked.

OKX received a MiCA license in the EU through its Maltese office in January 2025, becoming one of the first exchanges to achieve this milestone. However, during an inspection, the FIAU discovered weaknesses in OKX's risk assessment system. These weaknesses prevented the exchange from adequately assessing money laundering threats and taking appropriate actions. The identified risks included the use of cryptocurrency mixers, anonymous coins, stablecoins, and transactions on decentralized exchanges. Additionally, violations related to customer service outside the EU were noted, despite the exchange's stated regional strategy.

The regulator emphasized that OKX must consider potential threats from foreign users and funding sources. At the time of the announcement, OKX did not comment on the recognition of violations but assured that it continues to strengthen its compliance system. The exchange has also suspended its decentralized exchange (DEX) aggregator following consultations with regulators. This move was in response to coordinated efforts by the Lazarus Group to abuse scarce services and an increase in attacks aimed at disrupting the exchange. OKX implemented additional updates to prevent further abuse and deployed a hacker address detection solution to enhance security.

In a separate development, Thailand's Securities and Exchange Commission (SEC) filed a lawsuit against OKX and its operator Aux Cayes FinTech Co Ltd. The platform is accused of providing services without a license, violating the 2018 Digital Assets Emergency Ordinance. OKX began operating in Thailand in October 2021, charging a 0.1 percent commission on transactions despite lacking authorization. Authorities identified nine individuals promoting the exchange on social media platforms, who also face charges of promoting unlicensed activity. The actions violate Section 26 of the Emergency Decree, which carries fines and criminal penalties. If found guilty, OKX and its partners could face two to five years in prison, as well as fines of up to 500,000 baht and a daily fine of 10,000 baht for delinquency.

Thailand's SEC has reminded investors of the risks associated with unlicensed platforms, noting that users of such exchanges are not protected by law and may face fraud or money laundering. Licensed companies such as Binance and Upbit are listed on the regulator's official website. Thai authorities continue their efforts to combat unlicensed crypto exchanges, having announced the blocking of such platforms in 2024 and handing over their list to the Ministry of Digital Economy. Similar measures were taken against Bybit in 2023.