Date: July 25, 2024
Source: https://www.reuters.com
FCA Imposes Fine on Coinbase Subsidiary
The Financial Conduct Authority (FCA) has levied a £3.5 million fine on Coinbase’s UK-based subsidiary, CB Payments Limited (CBPL), for serious breaches of financial crime regulations.
Violations of Regulatory Agreement
CBPL failed to comply with a voluntary agreement put in place to address financial crime control deficiencies. Despite restrictions on accepting high-risk customers, the company onboarded over 13,000 such clients, facilitating transactions worth approximately $226 million.
FCA’s Strong Stance
The FCA emphasized the severity of CBPL’s repeated breaches and the significant weaknesses in its financial crime controls. The regulator’s action underscores its commitment to holding crypto firms accountable for compliance with anti-money laundering regulations.
Industry Implications
The fine serves as a stark warning to the crypto industry about the importance of robust financial crime prevention measures. Firms must prioritize compliance to avoid similar penalties and reputational damage.
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