- OKX CEO Star Xu has announced that accounts interacting with Tornado Cash will be closed on the OKX exchange to comply with international sanctions.
- Despite Tornado Cash’s popularity among privacy-centric users, it has also been used by criminals to launder stolen funds.
- Recently, Tornado Cash was added to the USA’s sanctions list, bringing it under increased scrutiny.
OKX enforces strict compliance measures to align with international sanctions, closing accounts linked to Tornado Cash.
OKX Implements Sanctions Compliance Measures
OKX CEO Star Xu has reiterated the exchange’s steadfast commitment to aligning with international sanctions. As part of these measures, any accounts interacting with Tornado Cash or similar entities like Garantex will be closed. Tornado Cash, a mixer service popular among users valuing privacy, has also been exploited for laundering illicit funds. Notably, the United States has included Tornado Cash in its sanctions list.
Implications for Users of Sanctioned Entities
Xu emphasized that deposits from or withdrawals to sanctioned services such as Tornado Cash or Garantex would lead to account closure. He stated, “We must adhere to all applicable sanction policies, including those imposed by the United States.” This decision underscores the importance of complying with global regulatory standards and minimizing the risks associated with financial crimes.
Refusal to Transfer Data Between Accounts
In one highlighted case, Xu confirmed the presence of significant transactions linked to sanctioned exchanges or DeFi protocols in a user’s account, resulting in its closure. OKX categorically refused to transfer data from the closed account to a new one, citing that such an action would contravene its compliance policies and potentially constitute an attempt to circumvent the sanctions framework.
Continuous Vigilance and Assurance
Xu assured users that the measures primarily impact a minority whose accounts engage with the sanctioned entities. He reaffirmed OKX’s policy of not servicing anyone on the Specially Designated Nationals and Blocked Persons (SDN) list, ensuring that the exchange remains compliant with international regulations. For the larger user base, the likelihood of being affected by these measures is minimal, providing reassurance and maintaining confidence in the platform’s integrity.
Conclusion
OKX’s stringent compliance with international sanctions highlights the exchange’s commitment to maintaining secure and lawful operations. By proactively closing accounts linked to sanctioned entities like Tornado Cash, OKX underlines its dedication to regulatory adherence and the prevention of illicit activities. Users can remain assured of the platform’s stability while understanding the importance of these compliance measures in safeguarding the broader financial ecosystem.
