Coinbase Payments was fined US$4.5 million by the British FCA for failing to effectively prevent money laundering

This site (120btC.coM): The British Financial Conduct Authority (FCA) stated in a press release on the 25th that it will fine Coinbase Payments, a subsidiary of Coinbase, US$4.5 million for failing to implement anti-money laundering measures.

Coinbase Payments was fined US$4.5 million by the FCA

FCA said that Coinbase Payments Limited (CBPL), a subsidiary of the US exchange Coinbase, was fined 3.5 million pounds (approximately US$4.5 million) due to insufficient anti-money laundering measures.

It is reported that the company mainly provides British customers with crypto-asset trading and transmission services within Coinbase and related applications: CBPL is not directly involved in the trading of cryptocurrencies, but acts as a trading intermediary and conduit for cryptocurrencies. However, the The company has not yet registered for this business.

FCA pointed out that the company signed a voluntary requirement (VREQ) with it in October 2020 as part of the implementation of anti-money laundering measures: Even so, CBPL still provides e-money services to 13,000 high-risk customers, 31% of which Users deposited approximately $24.9 million and then executed approximately $226 million worth of cryptocurrency trades through other Coinbase services.

Therese Chambers, FCA’s Executive Director of Enforcement and Market Supervision, emphasized that crypto companies like CBPL need to have strong financial crime prevention measures: Money laundering risks related to cryptocurrencies are quite common, and related companies must take them seriously, and CBPL’s There were significant deficiencies in anti-money laundering measures and repeated breaches of requirements.

Coinbase responded: No intention to violate, welcome supervision

In response, Coinbase responded in a blog statement that the company has always been committed to compliance: CBPL has been authorized by the FCA as an "electronic money institution" since 2017, and provides local Users provide electronic money and payment services and are not authorized to conduct "crypto-asset transactions." However, we did inadvertently admit a number of customers classified as high risk between 2020 and 2023.

And added, "Those high-risk users only account for 0.34% of the total users."

Previously, many cryptocurrency exchanges such as Binance have been fined and even served in prison for failing to prevent money laundering.

FCA cited the 2011 Electronic Money Regulations for the first time to impose penalties

It is reported that this is the first time the FCA has taken enforcement action against a crypto company under the 2011 Electronic Money Regulations, and as CBPL agreed to reach an agreement on this charge, the FCA also agreed The company's fine is reduced by 30% in accordance with the law.

However, the FCA has always been known for its strict encryption supervision. From publishing advertising and marketing guidelines for encryption companies to promoting stable currency supervision plans, it can be said that it has spared no effort.

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