Mar 28, 2024 01:25
OkcoinEurope, the European branch of the cryptocurrency exchange OKX, recentlyreceived a fine of 304,000 from the Malta Financial Services Authority (MFSA) forfailing to comply with local laws related to virtual assets.
Accordingto the MFSA, when determining the amount of the fine, it took thefact that OKX representatives cooperated with the regulator into account. However, nodetailed information was provided regarding the specific violations.
OKX Faces FinancialPenalty in Malta
OKX, whichhas been operating in the Maltese market since 2018, is one of the largestentities in the retail cryptocurrency exchange industry. However, the recentfine imposed by the MFSA demonstrates that even the biggest players can facetemporary compliance issues with regulations.
The penaltywas imposed as part of a settlement agreement and the "goodwill"shown by the company last month. The MFSA investigation revealed shortcomingsin relation to Article 41 of the Virtual Financial Assets Act.
"Bymeans of a settlement agreement entered into between the Company and the MFSA,the latter imposed an administrative penalty amounting to three hundred andfour 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
TH FNNC (@Crypto_Fennec1)
March 27, 2024However,the Maltese regulator took into account the fact that OKX cooperated, agreed toappoint an external service provider, and review its processes for compliancewith local regulations.
Maintaininga good relationship with the MFSA is essential for OKX, as Okcoin Europe isresponsible for serving clients within the European Union. Last year, theexchange began expanding its territorial reach in Europe, applying for alicense in France, among other countries.
Accordingto the most recent Finance Magnates Intelligence report, OKX is thefourth 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 ofthe world's largest exchanges, is not limiting its activities solely to Europebut is also expanding in other parts of the world. In mid-March, through itslocal subsidiary, OKX SG, the exchange joined the growing list of cryptoexchanges with Singapore's MPI License.
InFebruary, OKX unveiled OKX.TR, a localized platform tailored for Turkishtraders. The new exchange offers trading pairs denominated in Turkish Lira, cateringto the burgeoning interest in digital assets within the country.
However,global operations in the decentralized crypto market are not always met withsuccess. Recently, the exchange had to shut down its services in India due tolocal regulatory hurdles. OKX has notified its users in the country to closetheir accounts and redeem their funds before 30 April. Despite thesetback in India, OKX continues to expand its presence in various regionsaround the world.
This article was written by Damian Chmiel at www.financemagnates.com.
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