MiCA License at Risk: EU Regulators Probe OKX Over $100M Scandal

The February Bybit hack, orchestrated by Lazarus Group, resulted in a $1.5 billion asset drain, facilitated by social engineering and complex laundering tactics.

Bybit’s CEO, Ben Zhou, disclosed that $100 million of these funds were processed through OKX’s Web3 service, reigniting discussions about regulatory oversight.

While DEX platforms currently operate with fewer restrictions, European regulators are weighing whether OKX’s activities fall under the MiCA framework, potentially reshaping the compliance landscape for centralized and hybrid crypto services.

Regulators Target OKX—License at Risk in Europe?

OKX is facing mounting regulatory pressure after the European Digital Finance Council convened to discuss possible sanctions. Officials from 27 EU nations are considering whether the platform should comply with MiCA—some pushing for a license revocation or service ban across the EEA.

While Malta has taken a softer approach, opting for closed-door negotiations, other regulators are pressing for swift action. This scrutiny comes just after OKX settled a $504 million case with U.S. authorities for operating without proper licensing.

Related: OKX Catches South Korean Regulator’s Attention

Regulators aren’t just concerned about MiCA compliance—there are now suspicions that OKX facilitated transactions violating sanctions against North Korea. If proven, this could push the exchange into an even deeper regulatory crisis.

OKX's Stance

OKX exchange is pushing back against allegations of facilitating illicit transactions, stating that the company actively collaborates with authorities, assists in tracking suspicious activity, and freezes questionable funds on its centralized exchange.

The company argues that self-custodial wallets ensure user autonomy, making accusations of money laundering misguided. OKX also called Bybit’s CEO’s remarks misleading, insisting they do not reflect reality.

OKX Crackdown: The Beginning of Stricter Crypto Oversight?

The crypto industry is at a crossroads—regulators are tightening the noose, and exchanges must adapt or face consequences. This incident underscores the growing need for stronger security and compliance measures, as the market pivots toward a more regulated future.

Read on: OKX Exchange: Avoid Common Mistakes When Trading Cryptocurrency

If OKX loses its MiCA license, it could accelerate security-focused investments across the sector, proving that even dominant exchanges must align with global compliance standards.

Meanwhile, Europe is intensifying efforts to establish itself as a premier destination for legally operating crypto firms, reinforcing its commitment to a regulated yet thriving blockchain ecosystem.