Offshore exchange OKX has recently made its U.S. compliance team a top priority within the organization to address increased regulatory scrutiny on cryptocurrency exchanges for anti-money laundering practices. This strategic adjustment reflects a broader industry trend of regulatory bodies intensifying demands for compliance.

In response to growing concerns over regulatory risks facing offshore exchanges, OKX has taken steps like removing USDT from its European offerings and implementing a freeze of USDT assets in collaboration with Tether.

The platform’s global chief compliance officer has also stepped down after just six months in the role. Patrick Donegan, who led OKX’s anti-money laundering initiatives with a team of 300 employees, served from August 2023 to January 2024.

The U.S. government has been cracking down on offshore exchanges, with recent charges against KuCoin and its co-founders for non-compliance with anti-money laundering regulations. Binance also faced charges last year, resulting in a record $4 billion settlement.

Investors are increasingly withdrawing funds from exchanges like KuCoin, highlighting the importance of compliance and regulatory adherence in the cryptocurrency industry. Stay informed and explore more news on Global Crypto News to stay updated on the latest developments in the world of cryptocurrencies.

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