Risk and Compliance Disclosure

Risk & Compliance Disclosure

Last Updated: Aug 23, 2024

1. PURPOSE OF OUR PROGRAM

OKCoin Europe LTD (incorporated in Malta) and licensed by the Malta Financial Services Authority (“OKX”) is authorised to carry out ‘relevant financial business’ in terms of Regulation 2(1) of the Prevention of Money Laundering and Funding of Terrorism Regulations (the “PMLFTR”) and has established and implemented an Anti-Money Laundering, Anti-Terrorist Financing, and Trade & Economic Sanctions Program (“AML/ATF/Sanctions Program” or “Program”)  in line with the EU 6th Anti-Money Laundering DIrective (the “6th AMLD”), the Prevention of Money Laundering Act, the PMLFTR, the Financial Analysis Intelligence Unit (“FIAU”) Implementing procedures Part 1, the FIAU Implementing Procedures Part II - Virtual Financial Assets Sector and any other guidance issued by the FIAU to ensure a Virtual Financial Asset Services Provider that is compliant with all anti-money laundering/combatting funding of terrorism (“AML/CFT”) obligations. We want to promote legal, transparent business activities and maintain a strong reputation among our customers, regulators, and the digital asset industry.

 2. OUR ROLE AND ACTIVITIES

OKX provides online digital asset trading services and a platform to spot trade digital assets and facilitate margin lending in certain permitted jurisdictions. Our Services are available through OKX.com, associated application program interfaces, and mobile applications such as the OKX app.  

Disclosure: Trading is risky. The risk of loss in trading or holding digital assets can be substantial. You should therefore carefully consider whether trading is suitable for you in light of your financial condition.

 3. REGULATORY LANDSCAPE

We understand that regulatory bodies have taken a diverse approach to the laws and regulations regarding digital assets, including some characterizing or defining digital assets Digital Asset means crypto currencies, convertible virtual currency, virtual commodity, digital payment token, digital currencies, virtual currencies, stablecoins or digital assets of any types not falling within the classification of a financial instrument in terms of the Virtual Financial Assets Act - Chapter 590 of the Laws of Malta). As a trading platform, we believe that bitcoin and litecoin (as well as other alternative-coins) are digital assets that are emerging as an innovative alternative asset class; and therefore, digital assets should not be called currency or money. 

Disclosure: Digital assets are not fiat money nor fiat currency. Digital assets such as bitcoin and litecoin are NOT backed by any government or central bank. Nevertheless, since we provide a valuable feature to our customers who wish to trade and settle in fiat, we believe it is imperative to maintain a robust AML/ATF/Sanctions program as we connect with the fiat financial system. We may at times have opinions of the different regulatory approaches taken by various government bodies; however, at all times, we will fully abide by rules and regulations of the respective countries we operate in. We regularly reach out to regulators and industry on the best approach to regulating digital asset businesses. Furthermore, OKX does not accept certain customers. We may not make all of the Services available in all markets and jurisdictions, and may restrict or prohibit use of all or a portion of the Services from Restricted Locations, which at this time include Afghanistan, Algeria, Bangladesh, Bolivia, Canada, Cuba, El Salvador, Hong Kong, Iran, India, Japan, Malaysia, Nepal, Nigeria, North Korea, Syria, the Crimea, Donetsk and Luhansk regions of Ukraine, the United States of America including all U.S. territories like Puerto Rico, American Samoa, Guam, Northern Mariana Island, and the U.S. Virgin Islands (St. Croix, St. John and St. Thomas), and Uzbekistan.

We may restrict services in other jurisdictions including but not limited to Australia (specifically regarding our derivatives-related and cefi-related services), Bahamas (specifically regarding our retail products), Brazil (specifically regarding our derivatives-related and P2P services), Eritrea (specifically regarding our P2P services), Russia (specifically regarding our fiat payment services), Singapore (specifically regarding our cefi-related services), South Korea (specifically regarding our derivatives-related and P2P services), the United Kingdom (specifically regarding our derivatives-related, cefi-related, and P2P services).

We cooperate with governments and respect regulations and comply with applicable regulations. As good corporate citizens, we may be asked for information from law enforcement authorities and will assist if permissible by law as law enforcement conduct investigations to pursue and thwart illicit activity. What this also means is that our platform is intended for law abiding customers. We welcome the opportunity to earn your business, and in return we require that you act legally and properly on our platform.

 4. OUR AML/ATF PROGRAM

We have designed our Program to reasonably prevent money laundering and terrorist financing through a risk-based, multi-layer control system. 

The first layer includes a stringent customer identification program, including verifying the identity of our customers, whether individuals or entities. In addition to obtaining identification documents, we obtain for non-natural persons their entities’ beneficial owners/natural persons consistent to international standards such as the Financial Action Task Force (FATF). 

The second layer includes a risk-based system to warrant additional customer due diligence. To accomplish this, we screen our customers (including beneficial owners) against the entities/persons on the European Commission’s Sanctions list, the list of the Maltese Government through the Sanctions Monitoring Board and/or FIAU, the list of the Government of the Hong Kong SAR Gazette, United States Office of Foreign Assets Control (OFAC) Sanctions Lists, and the United Nation Security Council Sanctions List, among other government-provided lists of sanctioned individuals and entities. We also may screen against other lists on a discretionary basis to protect our reputation and customers. 

The third layer includes ongoing monitoring for suspicious activity. If our Program suspects or has reason to suspect suspicious activities have occurred, we will file suspicious activities reports with local regulators. A suspicious transaction is often inconsistent with a customer’s known and legitimate business, or personal activities. 

These are the primary components of our compliance program; however, the most important glue or connection to these layers are our leadership team and staff, including AML/Risk personnel that execute training, oversight and a sound compliance culture.

 5. RISKS

Trading in digital assets is considered high risk. Digital assets such as bitcoin and litecoin are NOT backed by any government or central bank. The risk of loss in trading or holding digital assets can be substantial. You should carefully consider whether interacting, holding, or trading digital assets is suitable for you in light of your financial condition.

 6. COMMUNICATION

If you have questions or require assistance with our customer due diligence controls, please reach out to our 24/7 customer service representatives by phone, chat or email at support@okcoin.com.

For any law enforcement requests, please refer to the Law Enforcement Request Guide for more details regarding the contact information: 

https://support.okcoin.com/hc/en-us/articles/360008812791-OKCoin-Law-Enforcement-Request-Guidance

 7. DIFFERENT VERSIONS

This "Risk & Compliance Disclosure" may be posted in different languages. If there are any discrepancies, the English version shall prevail.