The British financial regulator has fined crypto exchange Coinbase $4.5 million for repeatedly breaching a requirement that barred it from serving high-risk customers. The Financial Conduct Authority (FCA) said Coinbase’s CB Payments Limited (CBPL) division onboarded over 13,400 high-risk customers, despite a voluntary agreement to restrict such actions.
This marks a significant enforcement action by the FCA, showcasing its stringent oversight of cryptocurrency exchanges. The FCA noted that more than 30% of these high-risk customers deposited nearly $25 million, which was used for withdrawals and crypto transactions totaling about $226 million.
The breaches were attributed to CBPL’s lack of due skill and diligence in implementing and monitoring controls. These lapses went unnoticed for almost two years. This case underscores the importance of robust compliance measures in the rapidly growing crypto market, highlighting the long-term necessity for regulatory adherence.
