Coinbase’s UK subsidiary, CB Payments Limited (CBPL), has been slapped with a $4.5 million fine by the Financial Conduct Authority (FCA) for breaching a voluntary agreement related to customer onboarding.
The regulator found that CBPL had onboarded 13,416 customers deemed ‘high-risk’ by the FCA, in direct violation of a 2020 agreement. This oversight raised concerns about potential money laundering activities.
Therese Chambers, FCA’s joint executive director of enforcement and market oversight, emphasized the seriousness of the issue, stating, “CBPL’s controls had significant weaknesses and the FCA told it so, which is why the requirements were needed. CPBL, however, repeatedly breached those requirements. This increased the risk that criminals could use CBPL to launder the proceeds of crime.”
The FCA’s action could signal a more stringent regulatory approach towards cryptocurrency exchanges in the UK. Industry experts believe this could prompt other platforms to seek more crypto-friendly jurisdictions.
July 2024, Cryptoniteuae
