OKXS Europe – also known as Okcoin Europe, a subsidiary of Crypto Exchange Okx – was fined at 1.05 million euros on Thursday ($ 1.2 million) by Malta’s financial watchdog for violating the country’s laundering of money laundering.

The Financial Intelligence Analysis Unit (FIAU) said the company did not assess money laundering and financing terrorism risks derived from the products it offers and had violated parts of the country’s prevention of money laundering and financing of terrorist regulations.

“Regulatory compliance is a highest priority for OKX and we remain obliged to comply with and exceed global regulatory standards,” OKX said in a statement.

The company also said it had dealt with gaps identified in its compliance frame after the authority’s review of 2023. In the new message, FIAU also the company to make significant improvements over the past 18 months.

OKX secured the coveted markets in Crypto Assets License (Mica) from Malta earlier this year, which will allow crypto services throughout the European Union.

“The company was expected to assess the nature of risks prevailing in the services it offers,” the authority said in its message.

Fiau said the exchange should assess risks associated with the use of stableecoins, mixing that hides the origin of transactions, privacy coins, tokens designed for anonymity and tokens on decentralized exchanges.

OKX recently temporarily suspended its decentralized exchange union, following reports that European regulators had looked at how it had been used to launder funds from a recent hack of Bybit exchange.

Bloomberg first reported the story.