European oversight bodies started analyzing OKX following indications that thieves processed $100 million of stolen digital assets through its Web3 platform. The regulatory team checks if OKX needs to follow MiCA rules plus reviews if the platform receives any punishment. Authorities conduct an in-depth analysis of crypto exchanges because they have to prove how they stop illegal money flows from entering their system.
A story from Bloomberg states that hackers moved stolen Ethereum (ETH) funds mostly through OKX Web3 platform by sending them to DeFi protocols and cross-chain bridges. The advanced cyberattack placed against a major exchange created significant doubt about their existing security systems.
The EU regulators want to decide if OKX should follow MiCA rules when providing its Web3 services. People claim OKX must obey regulations because it connects with their main trading system. Many experts feel that MiCA cannot control decentralized platforms because they exist outside of the system’s jurisdiction.
Bybit Hack Sparks Debate On Crypto Investor Protection
Lawmakers and regulators discuss protecting investors while promoting crypto development during their recent examination of crypto platforms. Mark Uyeda now leads the SEC as acting chair and said he will inspect new regulations that affect DeFi exchanges. According to Uyeda strict compliance rules would halt the financial industry from expanding.
OKX earned MiCA pre-approval in January from its Malta offices to operate its services throughout the European Economic Area. The financial authorities in Malta are examining if they need to cancel Bybit’s operating permit after the security incident.
The EU talks led Maltese officials to agree on meeting OKX owners to respond to the claims made against the company. The regulatory authority can suspend OKX’s license and take legal action against it when they detect OKCA unlawful practices.
The investigation drives up crypto exchange control to enhance AML defenses while safeguarding user assets against cyber attacks. Upcoming weeks will show if OKX receives legal consequences or if it must change its compliance standards plus possibly lose its European operation license.
