Coinbase UK fined $4.5 million for ‘high-risk’ customer onboarding
The $4.5 million fine could signal the start of more scrutiny for crypto exchanges in the region.
Coinbase’s United Kingdom arm was fined $4.5 million by a British regulator for breaching a voluntary agreement related to user onboarding.
In 2020, CB Payments Limited (CBPL), part of the Coinbase Group, entered a voluntary agreement with Britain’s Financial Conduct Authority (FCA) that would prevent it from onboarding customers considered ‘high risk’ by the regulator.
Yet, CBPL has allegedly onboarded 13,416 customers that the FCA considered high-risk, and offered cryptocurrency services to them, which was also prohibited by the agreement. The British regulator fined Coinbase Group’s CBPL 3,503,546 pounds ( $4.5 million), for “repeatedly breaching” the agreement.
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Author: Zoltan Vardai
