OKX flags high-risk accounts based on VPN use, location, or links to sanctioned individuals or regions.
A 600-member compliance team manages KYC, transaction monitoring, and sanctions detection across user accounts.
The platform acknowledges false positives and is working to improve the user experience without compromising legal standards.
Cryptocurrency exchange OKX has provided detailed clarification on its global compliance and risk control procedures. The explanation comes after concerns were raised regarding account freezes and flagged transactions.
https://twitter.com/weideyyds/status/1941089480666218798
According to the company, a small number of users have been identified as high risk due to activity patterns involving tools like VPNs or Tor, or potential links to sanctioned regions or individuals.
High-Risk Account Triggers and Investigations
OKX CEO Star explained that users flagged as high risk often trigger the system through specific behaviors. These may include logging in from restricted locations or displaying ties to sanctioned jurisdictions. In such cases, the compliance team may request additional documents such as address verification, employment history, or proof of residence.
https://twitter.com/star_okx/status/1941334643548238309
The platform has a 600-member global compliance and risk control team responsible for monitoring and executing these procedures. Accounts found associated with non-compliant funds may face restrictions, suspensions, or complete deactivation. OKX applies strict internal compliance standards to its employees. These standards include zero tolerance for insider trading, false information, or any actions harming customer interests.
Violations are detected through internal monitoring systems and are handled decisively. At the customer level, OKX uses a layered compliance approach that includes KYC checks, transaction monitoring, sanctions screening, and market manipulation detection. The system integrates third-party databases with internal behavioral models to flag potential threats.
Compliance and User Experience Challenges
According to the company, one of the major challenges in global compliance is the occurrence of false positives. Despite using developed detection tools, the system can misclassify legitimate users as threats. Regulators tend to favor platforms adopting stricter controls, contributing to occasional over-enforcement.OKX has acknowledged user concerns over the misjudgment rate and information collection process.
The platform confirmed that users may be asked to re-submit documents even if their identity details are previously verified. The platform stated this process helps meet international legal standards. The company stressed on user privacy. All the documents given in are processed under tight data protection regulations, and thus they are guarded by access control systems. Disclosure of user information done out of the proper channel will face serious legal action.
OKX assured its customers that any customers who collaborate and do not engage in illegal activities will be able to gain access to all funds. The customer service team can work 24/7 to help with any questions referring to compliance and documentation procedures. The platform is also still working on optimization of its systems, so as to cause least interference to users who are compliant.