The Dutch National Bank (DNB) has imposed a significant fine of €2.25 million ($2.6 million) on the cryptocurrency exchange OKX for providing services in the Netherlands without the necessary approval. This action highlights ongoing regulatory scrutiny in the crypto sector.
According to the DNB, OKX’s parent company, Aux Cayes Fintech Co., facilitated cryptocurrency transactions between July 2023 and August 2024 without registering with the regulator. The DNB emphasized that operating without the required registration hampers its ability to monitor potential risks associated with criminal activities, such as money laundering. “Without the registration requirement, it is less easy to monitor whether the risk of criminal money flows is adequately addressed,” the bank stated.
The DNB further noted that, due to its non-compliance, Aux Cayes was unable to report any unusual transactions to the Financial Intelligence Unit-Netherlands during the specified period. However, the bank has acknowledged that OKX has since rectified its compliance issues.
This latest fine adds to a trend of regulatory actions against major cryptocurrency exchanges in the Netherlands. Crypto.com and Kraken have faced penalties of €2.85 million and €4 million, respectively, for similar infractions. The DNB reiterated its stance against any crypto operations that bypass regulatory supervision, signaling a tough approach towards compliance in the sector.
In response to the fine, OKX issued a statement characterizing the penalty as related to a “legacy registration matter,” claiming that the issue has been resolved and has had no impact on customers. The exchange highlighted that the DNB’s fine is the lowest ever imposed on a major cryptocurrency platform and noted that the penalty was reduced due to the steps they took to address compliance.
Furthermore, the penalty in the Netherlands is part of a broader pattern of regulatory challenges for OKX. Earlier this year, the company’s European branch in Malta was fined €1.1 million for anti-money laundering violations. Additionally, in February, OKX settled a case in the United States for $504 million after admitting to operating as an unlicensed money transmitter and managing approximately $5 billion in suspicious transactions. As part of that settlement, OKX is required to operate under strict oversight and engage an independent compliance consultant until 2027.
The developments surrounding OKX reflect the heightened regulatory environment facing cryptocurrency exchanges globally, emphasizing the importance of compliance in navigating legal frameworks.
