Crypto exchange OKX has temporarily suspended its DEX aggregator services after a European Union investigation linked its Web3 platform to the laundering of funds from the $1.5 billion Bybit hack. The exchange has blamed North Korea’s notorious Lazarus Group for exploiting its decentralized finance (DeFi) services for illicit activities.
OKX Responds to Regulatory Scrutiny
In a statement on Monday, March 17, OKX emphasized its commitment to security, stating that it remains vigilant amid growing cyber threats. The exchange revealed that its decision to suspend DEX aggregator services was made after consultations with regulators.
“After consulting with regulators, we made the proactive decision to temporarily suspend our DEX aggregator services. This move allows us to implement additional upgrades to prevent further misuse,” OKX noted.
As a leading Web3 platform, OKX offers a self-custodial wallet and DeFi solutions that grant users access to multiple exchanges and blockchains. Its DEX aggregator enables traders to efficiently swap assets across various decentralized exchanges. However, recent investigations have raised concerns about its misuse for money laundering activities.
Compliance with MiCA Regulations
OKX is currently under scrutiny due to the EU’s new Markets in Crypto-Assets (MiCA) regulations, which tighten oversight on digital asset platforms. EU regulators recently examined the exchange’s Web3 operations, intensifying regulatory pressures on the platform. Beyond Europe, OKX also faced penalties in the United States, settling a Department of Justice (DoJ) probe last month with an $84 million fine.
Enhanced Security Measures
In response to the ongoing investigation, OKX has introduced upgraded security systems. Among the new measures is a hacker address detection system for its DEX aggregator, designed to track and block illicit addresses in real time. The exchange clarified that its Web3 platform functions as a DEX aggregator rather than a custodian of customer assets.
The EU’s strict regulatory approach contrasts with the US’s more lenient stance under President Donald Trump. Some European officials warn that America’s crypto-friendly policies could lead to financial instability.
“The United States risks sinning through negligence. Financial crises often originate in the US and spread globally,” said Francois Villeroy de Galhau, a European Central Bank official.
Also Read: OKX Pleads Guilty: DOJ Hits Exchange with $500M Fine for U.S. Crypto Violations
While US policies could pose challenges, Europe remains ahead in crypto banking, positioning itself as a leader in the sector. OKX’s latest actions signal a broader trend of compliance efforts as the regulatory landscape continues to evolve.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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