Cryptocurrency exchange OKX has quietly reached a settlement with the Malta Financial Services Authority (MFSA) after paying a $322,000 (€304,000) “goodwill” fine.
The Malta Financial Services Authority agrees settle down The outstanding issues surrounding the cryptocurrency exchange OKX come after the exchange showed an act of goodwill by paying a $322,000 fine. The settlement relates to issues between the MFSA and OKX’s OKCoin Europe subsidiary, which has been operating in Malta since 2018.
gesture of goodwill
Last month, OKX, the second-largest cryptocurrency exchange, quietly settle down Launched an investigation with the Malta Financial Services Authority (MFSA) into regulatory failures related to its OKCoin Europe subsidiary. As a show of goodwill, OKX paid a $322,000 fine and agreed to a number of measures taken by the MFSA.
According to the settlement agreement announced on February 1, the MFSA’s investigation into the company found that “ Article 41 of the Virtual Financial Assets Law”. Under Article 41, regulated financial services or digital asset companies must comply with the Malta Directive or risk being fined or deported from the country.
In its announcement, the MFSA said:
“On January 22, 2024, following the company’s display of goodwill, the MFSA agreed to resolve outstanding issues with the company.”
The regulator further found that OKX cooperated with all proceedings and agreed to take a number of steps, including appointing an independent third-party service provider to review the exchange’s processes for compliance with local regulations. MFSA said:
“According to the settlement agreement signed between the company and the MFSA, the latter imposed an administrative penalty of 304,000 euros (€304,000).
In addition, the company and the MFSA have agreed on a number of measures, including the appointment of an independent third-party service provider to review the adequacy of the company’s governance arrangements. “
OKX faces regulatory challenges
OKX has faced some regulatory compliance hurdles recently. Last week, the exchange announced that it would terminate services in India and advised customers to close their positions by April 30. India’s Financial Intelligence Unit (FIU) has discovered nine cryptocurrency exchanges operating illegally in the country, including OKX, Binance, and Kraken.
In December last year, the Financial Intelligence Unit asked the Ministry of Electronics and Information Technology to block these exchanges in India. Following the FIU’s findings and request, Apple removed the exchange’s apps from its App Store and Google removed them from its Play Store.
Disclaimer: This article is for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
