Crypto Exchange OKX Pays €304,000 Fine in Malta for Compliance Failures

Okcoin Europe, the European branch of the cryptocurrency exchange OKX, recently received a fine of €304,000 from the Malta Financial Services Authority (MFSA) for failing to comply with local laws related to virtual assets.

According to the MFSA, when determining the amount of the fine, it took the fact that OKX representatives cooperated with the regulator into account. However, no detailed information was provided regarding the specific violations.

OKX Faces Financial Penalty in Malta

OKX, which has been operating in the Maltese market since 2018, is one of the largest entities in the retail cryptocurrency exchange industry. However, the recent fine imposed by the MFSA demonstrates that even the biggest players can face temporary compliance issues with regulations.

The penalty was imposed as part of a settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term agreement and the "goodwill" shown by the company last month. The MFSA investigation revealed shortcomings in relation to Article 41 of the Virtual Financial Assets Act.

"By means of a settlement agreement entered into between the Company and the MFSA, the latter imposed an administrative penalty amounting to three hundred and four thousand euro," the MFSA stated in a press release.

JUST IN: OKX's Okcoin Europe settles with Malta's MFSA for €304K over regulatory issues. The payment, termed a "goodwill" gesture, addresses past compliance failings. #OKX

— THΞ FΞNNΞC (@Crypto_Fennec1) March 27, 2024

However, the Maltese regulator took into account the fact that OKX cooperated, agreed to appoint an external service provider, and review its processes for compliance with local regulations.

Maintaining a good relationship with the MFSA is essential for OKX, as Okcoin Europe is responsible for serving clients within the European Union. Last year, the exchange began expanding its territorial reach in Europe, applying for a license in France, among other countries.

According to the most recent Finance Magnates Intelligence report, OKX is the fourth largest crypto exchange worldwide in terms of spot trading volumes. These ranked at over $75 billion in February 2024.

Global Moves of OKX

OKX, one of the world's largest exchanges, is not limiting its activities solely to Europe but is also expanding in other parts of the world. In mid-March, through its local subsidiary, OKX SG, the exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term joined the growing list of crypto exchanges with Singapore's MPI License.

In February, OKX unveiled OKX.TR, a localized platform tailored for Turkish traders. The new exchange offers trading pairs denominated in Turkish Lira, catering to the burgeoning interest in digital assets within the country.

However, global operations in the decentralized crypto market are not always met with success. Recently, the exchange had to shut down its services in India due to local regulatory hurdles. OKX has notified its users in the country to close their accounts and redeem their funds before 30 April. Despite the setback in India, OKX continues to expand its presence in various regions around the world.