Summary:
- Coinbase subsidiary CB Payments Limited (CBPL) fined $4.5 million by FCA.
- Fine for repeatedly violating rules against serving high-risk clients.
- First enforcement action under the UK’s 2011 electronic money regulations.
Coinbase has been fined $4.5 million by the U.K. Financial Conduct Authority (FCA) for serving “high-risk” customers. The fine was announced on Thursday, July 25, and was levied against a subsidiary of the cryptocurrency exchange, CB Payments Limited (CBPL). According to the FCA, CBPL repeatedly violated a requirement that prevented the company from doing business with high-risk clients.
Therese Chambers, joint executive director of Enforcement and Market Oversight at the FCA, emphasized the importance of taking money laundering risks associated with crypto seriously. “The money laundering risks associated with crypto are obvious and firms must take them seriously,” Chambers said in a news release.
The FCA notes that this action was taken under the U.K.’s 2011 electronic money regulations and marks the first time the regulator has taken enforcement action using these powers.
This fine highlights the ongoing need for clear regulatory frameworks in the crypto space. The U.S. Securities and Exchange Commission (SEC) and other regulatory bodies are working on creating such frameworks, but there remains substantial uncertainty. In contrast, Europe’s Markets in Crypto-Assets (MiCA) regulation offers a more unified regulatory approach.
As the regulatory landscape continues to evolve, the actions against Coinbase underscore the importance of compliance for crypto firms operating in multiple jurisdictions.
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