TLDR
- OKX fined €2.25 million by the Dutch National Bank for operating without registration.
- The fine covers the period from July 2023 to August 2024.
- OKX operated under the name Aux Cayes Fintech Co. without proper registration.
- The Dutch government introduced mandatory registration for crypto firms in 2020.
- OKX has taken corrective actions including migrating users to a licensed entity.
OKX, the global crypto trading platform, has been fined €2.25 million ($2.6 million) by the Dutch National Bank (DNB). The fine was imposed for operating in the Netherlands without mandatory registration. The period of violation spans from July 2023 to August 2024.
OKX Takes Corrective Actions After Fine
OKX operated in the Netherlands under the name Aux Cayes Fintech Co. without registering with the DNB. The Dutch government introduced mandatory registration for digital asset businesses in 2020. This regulation aimed to ensure that the crypto industry complies with the country’s anti-money laundering (AML) laws.
A spokesperson from OKX clarified that the fine relates to a historical registration issue. The company emphasized that corrective actions had already been taken, including migrating Dutch users to a fully licensed European entity.
The Dutch fine is part of a series of penalties for OKX. In February 2024, its Seychelles entity faced a $504 million penalty in the United States. This penalty followed allegations of processing over $1 trillion in transactions for U.S. customers despite blocking them on the platform.
In addition, the Financial Intelligence Analysis Unit (FIAU) fined OKX € 1.1 million in April. The FIAU cited systemic flaws in the platform’s compliance processes. OKX assured regulators that it would improve its compliance measures going forward.
Other Legal Challenges Faced by OKX
OKX has also faced regulatory scrutiny in other regions. In January 2024, Malta’s financial authorities fined the platform €304,000 for non-compliance. Thailand’s SEC filed a criminal complaint against OKX, accusing the platform of breaching local regulations.
Despite these challenges, OKX has taken steps to address its compliance failures. The platform has committed to improving governance and regulatory adherence globally. The Dutch National Bank’s fine is another reminder of the regulatory hurdles facing the crypto exchange.
