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Malta Fines OKCoin Europe €1 Million for AML Violations
Maltese authorities have fined cryptocurrency exchange OKCoin Europe €1 million ($1,1 million) for violating anti-money laundering (AML) regulations. The breaches were identified by the Malta Financial Intelligence Unit (FIAU) in 2023, posing a significant challenge to the exchange’s reputation.
“Cryptocurrency exchanges need to be more responsible in complying with AML regulations to protect investors and the financial system,” comments a cryptocurrency regulation expert from the Malta Financial Services Authority.
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AML Violation Details
The FIAU carried out an inspection in April 2023 which revealed numerous violations:
1. No Transaction Verification
Over 80% of OKCoin Europe users’ cryptocurrency transactions failed AML and KYC checks, meaning the exchange did not verify the sources of funds or the identity of customers.
FIAU experts have noticed inexplicably large jumps in the volume of stock exchange deposits in a short period of time, which may indicate money laundering attempts.
3. Sudden Bursts of Customer Activity
Some customers, after a long period of inactivity, suddenly began to show increased activity, which also raised suspicions.
4. Failure to Update Identity Documents
In many cases, customer identification documents such as ID cards and passports were not updated, meaning that OKCoin did not take the necessary steps to re-obtain proper and valid documents from customers.
OKCoin Europe's reaction
OKCoin Europe responded to the breaches by making a number of changes to its AML procedures:
1. Strengthening AML Procedures
The exchange has invested in technology and procedures to better monitor transactions and verify customers.
2. Hiring Compliance Specialists
OKCoin Europe has hired additional compliance specialists to ensure AML compliance.
3. Cooperation with Regulators
The exchange is working with regulators to ensure full compliance and avoid similar violations in the future.
Technical Data and Quotes
Token Name: OKCoin Europe Token (OKT)
Current Price: $1.25
Market Capitalization: $125 million
Home Page: www.okcoin.com
Quotes: CoinMarketCap
Summary: Is Investing in OKCoin Europe Safe?
The fine imposed by the FIAU on OKCoin Europe is a serious warning to investors. Although the exchange has taken steps to improve its AML procedures, investors should be cautious.
“Cryptocurrency exchanges need to be more responsible in complying with AML regulations to protect investors and the financial system,” concludes a cryptocurrency regulation expert from the Malta Financial Services Authority.
