Key Points:

  • The OKX US compliance department will be a top priority amidst the increased legal scrutiny faced by exchanges in the US.

  • The exchange previously announced its exit from the Indian market following compliance notices issued to nine foreign exchanges.

The second-largest offshore exchange in the US has elevated the OKX US compliance department to top priority status, according to reports from Wu Blockchain. All operations are now under the strict oversight of this compliance unit, as confirmed by sources familiar with the situation.

OKX US Compliance Department Enhanced Amid Regulatory Scrutiny

Activities to enhance the OKX US compliance department come amid heightened legal scrutiny faced by exchanges in the US, notably exemplified by the recent indictment of KuCoin and its founders.

Concerns over the regulatory risks associated with offshore exchanges have been further compounded by OKX's recent decision to delist USDT in Europe, accompanied by the largest USDT freeze in history in collaboration with Tether.

In another significant development, OKX announced its exit from the Indian market following compliance issued by the country's regulatory authorities with nine foreign exchanges, including Binance, Kraken, HTX, Bitfinex, and OKX. The Financial Intelligence Unit (FIU) of the Indian Ministry of Finance mandated the blocking of notified crypto exchanges' websites within a two-week timeframe.

OKX Resolves Compliance Issues in Malta Amid Global Expansion

This move follows OKX's recent settlement agreement with the Malta Financial Services Authority (MFSA) over violations of certain regulations.

Despite announcing an expansion of its operations in Malta in December 2023, OKX has faced regulatory challenges, prompting the company to strengthen its compliance efforts globally. OKX had established a local office in Malta to ensure adherence to the country's crypto regulations, aiming to better serve its customer base in the region.

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