#cryptonews
European crypto regulators are considering penalties against OKX after hackers allegedly laundered $100 million in stolen funds through its Web3 platform, following an exploit on the crypto exchange Bybit.
A presentation at the meeting reportedly stated that OKX’s Web3 user interface, token-swapping services, and terms of use indicate control by an OKX Singapore entity, suggesting that the platform should be regulated under MiCA.
While fully decentralized platforms are exempt, some regulators argue that OKX’s service is integrated into its main exchange, making it subject to MiCA rules.
Others raised concerns over Malta’s decision to grant OKX MiCA pre-authorization, urging the country’s financial authority to reassess the exchange’s compliance. A presentation at the meeting suggested regulators consider whether the case could involve a violation of North Korea-related sanctions, given Bybit’s claim that the hackers are linked to North Korea.
The sources said some regulators recommended revoking OKX’s MiCA permit and restricting its operations in the European Economic Area (EEA).
The exchange emphasized its compliance with local laws and said it responds to regulatory inquiries as needed.
OKX has denied wrongdoing, stating that it is assisting Bybit and regulators in tracking and blocking wallet addresses linked to the stolen funds.
Regulators face ongoing challenges in defining the boundary between centralized exchanges and Web3 services, especially as platforms integrate more features.
If hybrid models like OKX’s Web3 platform fall under stricter oversight, other exchanges offering similar services may also come under regulatory scrutiny.
ESMA has not confirmed any enforcement action but said it “stands ready to deploy all available regulatory tools, if necessary, to safeguard market integrity and investor protection.”