Aux Cayes FinTech Co. Ltd., a subsidiary of the famous crypto exchange OKX, has resolved an issue with the United States Department of Justice (DOJ). The company acknowledged that it had not officially been licensed to operate within America as a money transmitter. Therefore, as revealed in its official release, it is expected to settle with an over $500 million fine due to years of servicing Americans without registration and licensing from the authorities.
Notably, the allegations did not extend to involve individual employees in the company on client harm or funds theft.
$505 Million Fine
Following the acknowledgment, the DOJ requires that the company pay a $84 million fine and forfeit over $421 million in profits and fees earned from offering its financial services to U.S. citizens. However, no government-appointed monitor is part of the settlement.
We cooperated with the US Dept of Justice in their thorough investigation of our business. We had a small percentage of customers who were able to use our international services due to historical compliance gaps. Today our compliance controls are among the leading in the… pic.twitter.com/sg1b2GC4wE
— OKX (@okx) February 24, 2025
The company has agreed to settle the government-issued fine without appeal or extended discussions. Additionally, it hired a compliance consultant to address existing gaps and strengthen its compliance program. It plans to keep working with the consultant to ensure ongoing improvement.
“We are pleased with the resolution and look forward to implementing our global expansion plans and maintaining our status as the most trusted and technology-led crypto exchange in the world,” the OKX team commented.
OKX Regulatory Compliance
Cementing its position as a leading global crypto exchange, OKX has battled many regulatory issues and obtained licenses from different countries worldwide. In September 2024, it received a Major Payment Institution (MPI) license today from the Monetary Authority of Singapore (MAS), allowing it to offer crypto trading services and digital payment experiences to Singaporean investors.
In a recent development, the exchange obtained EU Markets in Crypto-Assets Regulation (MiCA) license. Thus, the company’s European headquarters in Malta will oversee the exchange’s services to clients from the 28 EEA countries. OKX has also added features like OTC trading, spot trading, and bot trading to meet the needs of its European customers.
Meanwhile, due to strict regulations, OKX has stopped operating in Nigeria, the world’s second most crypto-inclined country.
