OKX Fined $1.2 Million for AML Failures by Malta’s FIAU
Malta’s Financial Intelligence Analysis Unit (FIAU) has fined Okcoin Europe, the Europe-based arm of cryptocurrency exchange OKX, 1.1 million euros ($1.2 million) for multiple Anti-Money Laundering (AML) breaches in 2023. The announcement came on April 3, marking a significant regulatory action against the platform.
Despite recent improvements in OKX’s AML policies over the past 18 months, the FIAU stated that it could not overlook the compliance shortcomings from 2023, some of which were described as “serious and systematic.” OKX, one of the first exchanges to secure a license under Europe’s Markets in Crypto-Assets (MiCA) regulation, faced scrutiny for its business risk assessment (BRA) process during the 2023 compliance examination.
The FIAU found deficiencies in the BRA’s methodology, which hindered OKX’s ability to properly assess money laundering risks and implement adequate measures. Among the identified risks were the use of cryptocurrency mixers, privacy coins, stablecoins, and decentralized exchange tokens.
OKX did not directly address the fine, but a representative stated that the platform remains committed to enhancing its security, transparency, and compliance practices.
Genius Group Faces Bitcoin Treasury Downsizing Amid Legal Dispute
Singapore-based AI firm Genius Group has announced that it may need to reduce its Bitcoin treasury following a US court order restricting its financial activities. The New York District Court issued a preliminary injunction (PI) and temporary restraining order (TRO) on March 13, preventing the firm from selling shares, raising funds, or purchasing more Bitcoin.
The injunction is linked to a legal battle concerning Genius Group’s merger with Fatbrain AI. As a result, the company stated that while it would minimize Bitcoin sales, downsizing might become necessary if the court order remains in place.
Paul Atkins Moves Closer to SEC Chair Position
Paul Atkins, a nominee selected by former President Donald Trump, has passed a key committee vote in his bid to become the next chair of the US Securities and Exchange Commission (SEC). The Senate Banking Committee approved Atkins’ nomination with a 13-11 vote on April 3, moving it forward to a full Senate vote.
Atkins, known for his previous experience as an SEC commissioner, is expected to bring a more crypto-friendly stance to the agency. Committee chair Tim Scott expressed confidence in Atkins’ ability to offer “much-needed clarity” to the cryptocurrency sector.
Hut 8 and American Bitcoin Aim to Lead US Mining Efforts
Bitcoin mining firm Hut 8 has unveiled plans for a new mining venture named American Bitcoin, partnering with Donald Trump Jr. and Eric Trump. The initiative seeks to establish one of the most efficient and cost-effective mining platforms in the United States.
Hut 8 CEO Asher Genoot highlighted the strategic timing, noting that with China’s reduced presence in mining and growing pro-Bitcoin sentiment in the US, the venture is positioned to capitalize on favorable conditions. The company aims not only to expand mining capacity but also to maintain low operational costs, with an eye toward a public listing on a US exchange.
Genoot addressed criticisms of energy consumption, emphasizing that Bitcoin mining leverages cheap, renewable energy, aligning with advancements in the tech sector.
