Chair of Malta Stock Exchange sits on board of crypto exchange fined €1 million

Joseph Portelli, the government-appointed executive chairman of the Malta Stock Exchange (MSE), is a member of the board of OKCoin Europe Ltd., a cryptocurrency exchange registered in Malta that was fined €1 million by the Financial Intelligence Analysis Unit (FIAU) for compliance failures.

The fine followed an FIAU investigation that found serious anti-money laundering breaches at the company, raising questions about Portelli’s dual role in public and private finance.

Last year, the Malta Financial Services Authority (MFSA) also initiated a separate probe into OKCoin for similar irregularities. Instead of imposing a fine, the MFSA reached a settlement with the exchange. The company agreed to pay an administrative penalty of €304,000 as a gesture of “goodwill.”

OKCoin is ultimately owned by a firm registered in the British Virgin Islands.

Portelli also sits on the Malta Financial Services Advisory Council and is one of two Maltese nationals on OKCoin’s board.

The other is Samuel Azzopardi, president of the Gozo Football Association and a former Nationalist Party mayor.

Other board members include Wei Man Cheung of the Netherlands, Fang Hong of California, and Belgian national Erald Ghoos, who resides in Sliema.

While the Malta Stock Exchange does not regulate cryptocurrency platforms like OKCoin, Portelli’s position on its board has sparked concern among industry insiders.

“The fact that this exchange has breached anti-money laundering rules puts Portelli’s position into further question,” a source familiar with the financial services sector told The Shift.

When contacted, Portelli downplayed the concerns and denied any conflict of interest.

“My role as chair of the Malta Stock Exchange is part-time, and my remuneration reflects this,” Portelli told The Shift.

“Before starting my engagement with the MSE in 2015, I sat on various boards and continue to do so. None of the boards I’m involved with conflict with the MSE,” he added.

He said he joined OKCoin’s board in May 2024, more than a year after the FIAU conducted its on-site visit.

“There are no conflicts of interest between my roles at the stock exchange and OKCoin, as the MSE does not trade cryptocurrencies,” Portelli said. “I have been fully transparent with the stock exchange about my involvement with OKCoin.”

While declining to comment on regulatory breaches that occurred before his appointment, Portelli said the company has since turned a corner.

“I can assure you that OKCoin now has a governance and compliance culture that not only meets industry best practices but was also praised by the FIAU for demonstrating a strong commitment to significant improvements through self-imposed remediation over the past 18 months,” he said.

Portelli has spent much of his career in the United States working with financial services firms. He has led the MSE for the past decade but has recently drawn criticism for stepping beyond his official remit.

He conducted interviews with financial services executives—including local bank CEOs—on behalf of the stock exchange. Some within the industry have described the interviews as self-promotional.

Portelli was appointed to his role by Finance Minister Clyde Caruana.