The leading cryptocurrency exchange, OKX, has been slammed with a fresh court order. A report from Bloomberg shows that Malta’s top financial regulator has fined the company $1.2 million after uncovering multiple failures in handling anti-money laundering (AML) rules. Notably, this legal action coincides with a lawsuit filed by Thailand’s Securities and Exchange Commission.
Regulators in Malta Uncover Major Lapses
It is worth noting that Malta’s Financial Intelligence Analysis Unit (FIAU) issued the fine following a thorough evaluation of the firm’s operations last year.
According to reports, the investigation focused on OKCoin Europe, OKX’s European branch, and found that it had fallen short of basic AML duties. Authorities say the Seychelles-based crypto exchange did not do enough to detect or prevent money laundering risks.
As detailed, one of the main concerns raised was the lack of proper checks on customers. The FIAU said that nearly half of the client records examined were missing key information or risk assessments.
According to reports, transaction monitoring was also weak, with the exchange failing to flag suspicious activity. The FIAU commissioners described the company’s compliance as both serious and systematic in its shortcomings.
Unfortunately, this is not Malta’s first penalty. Earlier in January, the Malta Financial Services Authority fined OKX over $330,000 for unrelated compliance issues.
Thailand Lawsuit Adds to Mounting Pressure
Currently, OKX is being sued by Thailand’s Securities and Exchange Commission. According to reports, the security commission claimed that the company offered digital asset services in the country without a proper license.
That case is ongoing and adds to the scrutiny OKX faces from multiple sides.
While OKX faces legal action in Thailand, recent reports indicate that the Thailand Securities and Exchange Commission (SEC) has officially approved Tether USD₮ as a recognized digital asset.
OKX Focuses on European Growth
It is worth mentioning that despite these challenges, OKX continues to grow in Europe. Reports show that the exchange recently acquired a MiCA license, allowing it to operate more widely under new European Union digital assets regulations.
It also named Linda Lacewell, former head of the New York DFS, its new legal chief in what seems like a move to tighten internal controls.
Meanwhile, OKX has temporarily suspended its decentralized exchange (DEX) aggregator in response to alleged misuse by North Korea’s notorious hacking group, Lazarus.
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