The UK’s Financial Conduct Authority (FCA) has fined CB Payments Limited, a division of Coinbase Group, £3.5 million (roughly $4.5 million). This penalty is for servicing high-risk clients without proper licensing.
CB Payments Limited allowed 13,416 high-risk clients to deposit $25 million, leading to $226 million in transactions. Despite not being directly involved in cryptocurrency trades, the firm acted as a gateway to the Coinbase platform. The company has agreed to pay the fine, receiving a 30% reduction in the penalty.
Theresa Chambers from the FCA stressed the importance of strict compliance to prevent money laundering through digital assets. Recent FCA actions include issuing 450 warnings about illegal cryptoasset ads in February 2024. This fine underscores the need for stringent regulatory adherence in the evolving crypto market.
This enforcement highlights the FCA’s commitment to ensuring a secure and transparent financial ecosystem.
