Fine

<h4><strong>The UK’s Financial Conduct Authority (FCA) has fined a UK subsidiary of crypto exchange Coinbase for breaching financial crimes requirements. </strong></h4> 
<p>The FCA slapped the Coinbase-affiliated firm with a $4.5 million fine for failing to comply with a voluntary agreement meant to stop the onboarding of users deemed high-risk to the platform.</p> 
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      <h5><strong>Coinbase UK Subsidiary Fined $4.5 Million for Financial Crimes Breach</strong></h5> 
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<p>The Coinbase UK subsidiary, CB Payments Limited (CBL), reportedly signed an agreement with the FCA in 2020. The deal sought to minimize the use of the CBL platform for criminal activities such as money laundering.</p> 
<p>The FCA revealed that CBL had violated this agreement by onboarding 13,416 users considered high-risk. Therese Chambers, joint executive director of enforcement and market oversight at the FCA, slammed CBL’s management for these violations.</p> 
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 <img decoding="async" class="size-full wp-image-146619" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/07/FCA-x-Coinbase.jpg" alt="" width="903" height="501" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/07/FCA-x-Coinbase.jpg 903w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/FCA-x-Coinbase-300x166.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/FCA-x-Coinbase-768x426.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/FCA-x-Coinbase-757x420.jpg 757w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/FCA-x-Coinbase-696x385.jpg 696w" sizes="(max-width: 903px) 100vw, 903px">
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  <strong>Source: </strong><a href="https://x.com/TheFCA/status/1816413540988653837" target="_blank" rel="noopener"><strong>X</strong></a>
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<p>Chambers said in a statement on Thursday, July 25, “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. We will not tolerate such laxity, which jeopardizes the integrity of our markets.”</p> 
<h5><strong>Reaction from Coinbase</strong></h5> 
<p>Reacting to the <a href="https://www.fca.org.uk/news/press-releases/fca-first-enforcement-action-against-firm-enabling-cryptoasset-trading" target="_blank" rel="noopener">FCA’s announcement</a>, Coinbase affirmed its commitment to regulatory compliance. The exchange said in a statement, “We welcome regulation and are dedicated to working proactively and closely with the most sophisticated financial regulators in the world, including the FCA, to ensure we offer the most compliant, trusted, and secure platform for our customers.”</p> 
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  Source: <a href="https://x.com/_crypto_outlook/status/1816483685052325974" target="_blank" rel="noopener">X</a>
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<h5><strong>A message to crypto service providers</strong></h5> 
<p>Most crypto users consider the FCA’s fine on CBL a message to crypto service providers. The regulator seems to urge crypto firms to <a href="https://www.altcoinbuzz.io/cryptocurrency-news/uks-fca-to-improve-surveillance-of-the-crypto-market/" target="_blank" rel="noopener">take financial crime management seriously</a>. Firms that fail to comply with the FCA’s policies risk facing penalties or operating limits.</p> 
<p>Interestingly, the FCA noted that CBPL “qualified” for a 30% discount on the fine following its agreement to resolve the case.</p> 
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<h5><strong>Disclaimer</strong></h5> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/uks-fca-fine-coinbase-uk-subsidiary/">UK’s FCA Fine Coinbase UK Subsidiary</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

UK’s FCA Fine Coinbase UK Subsidiary

Altcoin Buzz

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