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🌋 British Branch of Coinbase Hit with $4.5 Million Fine

posted  25 Jul 2024
Photo - British Branch of Coinbase Hit with $4.5 Million Fine
The UK financial regulator, FCA, fined CB Payments Limited (CBPL), a subsidiary of Coinbase Group, £3,503,546 (approximately $4.5 million) for servicing high-risk clients.  

This category includes individuals:
  • Linked to high-risk countries or business sectors;
  • With complex or opaque ownership structures;
  • Responsible for unusual transactions lacking an obvious legitimate purpose;
  • Political figures and officials who are exposed to corruption due to their professional activities.
In October 2020, the regulator mandated CBPL to establish a framework for detecting financial crimes, prohibiting the firm from engaging with high-risk clients until this was achieved. Despite this, 13,416 high-risk individuals received services from CBPL. Collectively, they deposited at least $24.9 million into Coinbase Group companies, which were then used for transactions totaling around $226 million.  

The FCA highlights that this breach was due to the company's negligence and insufficient monitoring measures, as these incidents remained undetected for years.  

Coinbase benefited from a 30% reduction in the fine amount due to its agreement to cooperate with the regulator in settling the issue.  
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