Radhika Parashar
- Before officially launching in June 2024, OKX was launched in Beta mode in Netherlands
- The DNB claims that OKX did not flag suspicious transactions in a period between 2023 and 2024
- OKX’s response to the development remains awaited
The OKX crypto exchanged as been flagged as an unlicensed crypto operator in the Netherlands. The Dutch National Bank (DNB) has levied a fine of $2.6 million on OKX for conducting unregistered operations between July 2023 and August 2024 — the same time when EU’s MiCA legislation were gradually being deployed into effect.
In an official statement shared on Wednesday, September 3, the DNB claimed that the exchange had failed to report unusual crypto transactions to the Financial Intelligence Unit (FIU) during the aforementioned period among other breaches of local laws.
“In imposing the fine and setting the amount of EUR 2,250,000 (roughly $2.6 million), DNB considered the severity, scope, duration, and culpability. The final fine was reduced due to the steps Aux Cayes took to end the violations and prevent recurrence by facilitating the transfer of its Dutch clients to a registered group entity,” DNB’s statement said. Aux Cayes is the Seychelles-based entity that operates OKX.
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The MiCA laws were imposed across the EU in a phased manner — first of which started in June 2023. Before they came into effect, the Netherlands had put anti-money laundering and countr terror financing rules in place for crypto firms to adhere to.
These local rules went live in May 2020 in order to curb the risk of crypto misuse given that transactions processed via these digital assets are largely untraceable.
“By offering crypto services in the Netherlands without registering with the Dutch Central Bank (DNB), Aux Cayes violated the objectives of the Money Laundering and Terrorist Financing (Prevention) Act (Wwft),” the DNB said in its statement.
In January this year, OKX announced that it became the first global exchange to have secured a MiCA licence to operate in full compliance with Europe’s crypto laws.
“Our fully regulated crypto products are now set to roll out to 400M+ people across Europe,” the exchange had posted on X at the time, announcing the development.
As of now, a reaction from OKX has to DNB’s fine remains awaited.
