resolution of the investigation in the USA

Aux Cayes FinTech Co. Ltd., affiliate of OKX, has reached an agreement with the USA Department of Justice (DOJ) to close an investigation regarding the failure to register as a money transmitter. 

The event, which led to the sanction of 84 million dollars, represents a significant step in the compliance strategy of the crypto exchange platform.

The context of the investigation in the USA on OKX

The investigation focused on alleged gaps in compliance protocols, which would have allowed a limited number of U.S. users to operate on the global OKX platform.

However, no charges have been brought against the company’s employees, nor have any damages been found to users. The total amount of revenue generated by these clients in the USA amounts to approximately 421 million dollars, the majority of which comes from institutional clients.

To resolve the issue, Aux Cayes FinTech agreed to pay a penalty of 84 million dollars and to forfeit the earnings obtained from U.S. clients during the period under review. The company has also strengthened its compliance controls, initiating collaborations with industry experts to prevent similar problems in the future.

The approach of OKX to compliance

OKX has always claimed to operate in compliance with local and global regulations. The company stated that, following the discovery of these gaps, it has independently taken measures to strengthen compliance protocols. Among the initiatives implemented are:

• Enhancement of the Know Your Customer (KYC) program and the Customer Risk Rating (CRR) for a more effective assessment of the risk associated with clients.
• Expansion of the Enhanced Due Diligence (EDD) program to mitigate any high-risk factors.
• Adoption of advanced compliance tools for Anti-Money Laundering (AML), with real-time transaction monitoring systems.
• Implementation of geo-blocking and geo-tracing technology to prevent fraudulent activities.
• Creation of a team dedicated to security and combating financial crimes, composed of over 150 experts with experience in regulatory bodies and law enforcement.

Relationship with the SEC and Future Prospects

The DOJ investigation does not directly involve the Securities and Exchange Commission (SEC), but the Aux Cayes FinTech case highlights the growing attention of U.S. authorities towards crypto platforms.

OKX, like many other companies in the sector, is subject to a constantly evolving regulatory landscape in the USA, with authorities intensifying scrutiny on the operations of global platforms.

Looking to the future, OKX continues to strengthen its commitment to transparency and regulatory compliance. The company positions itself as a leader in the security of crypto exchanges, promoting innovative solutions to ensure compliance with international regulations. 

The resolution of the Aux Cayes FinTech case represents an opportunity for OKX to consolidate its reputation as a reliable exchange and compliant with global standards.

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Conclusion

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The Aux Cayes FinTech case demonstrates the importance of compliance in the crypto sector, particularly for companies operating on a global scale. 

OKX has responded with concrete measures to strengthen its regulatory framework, avoiding future issues with the U.S. authorities. 

The collaboration with the DOJ and the adoption of new compliance strategies confirm the company’s intention to continue operating in a transparent and secure manner for its users at an international level.