A Coinbase subsidiary, CB Payments Limited (CBPL), has been fined £3.5 million by the UK’s Financial Conduct Authority (FCA) for onboarding “high-risk” customers despite a voluntary agreement to address security concerns first. The fine marks the FCA’s first enforcement action against a cryptoasset trading company. CBPL, not registered to undertake cryptoasset activities in the UK, provided services to 13,416 high-risk customers, leading to transactions totaling approximately $226 million (£175 million).
The FCA highlighted that CBPL’s actions demonstrated a lack of due skill, care, and diligence, increasing the risk of money laundering through its platform. The financial regulator stressed the necessity for strong financial crime controls in firms facilitating crypto trading. Coinbase responded by acknowledging the issue, attributing it to an unintentional oversight, and reaffirmed its commitment to compliance and regulatory cooperation.
The fine was reduced by 30% as CBPL agreed to settle the matter. This enforcement action serves as a warning to firms in the crypto sector about the importance of robust financial crime controls, especially given the heightened risks of money laundering associated with digital assets.
Source: uktech.news
