OKX, a leading crypto exchange, has been hit with user complaints about account freezes and strict compliance measures that have led some users to withdraw their funds altogether. In response to the issues, the CEO, Star Xu, acknowledged problems with “high false positives” in the exchange’s compliance system.
Despite having a team of 600 global members dedicated to flagging and removing malicious actors, the exchange has seen its DEX wrongly flagged for aiding hackers in laundering stolen assets. OKX faces stricter regulatory scrutiny due to its anti-money laundering (AML) regulations, particularly since Binance was fined $4.3 billion for flouting similar rules.
The exchange’s strict control measures are designed to prevent money laundering and other illicit activities, but they have led to an overly cautious approach that strains the user experience. As a result, OKX has seen its trading volume drop, although it remains one of the largest in the industry.
Source: https://ambcrypto.com/is-okxs-compliance-chaos-part-of-a-larger-global-issue