UK Watchdog Fines Coinbase UK £3.5 Million for Regulatory Breaches

IconCryptoNewsTerminal Staff25 Jul, 2024

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UK Watchdog Fines Coinbase UK £3.5 Million for Regulatory Breaches

The UK's financial watchdog, the Financial Conduct Authority (FCA), has fined Coinbase UK £3.5 million ($4.5 million) for failing to comply with anti-money laundering and terrorist financing regulations. According to the FCA, Coinbase UK failed to: conduct proper due diligence on high-risk customers; monitor transactions for suspicious activity; *and report suspicious activity to the FCA. The FCA's investigation found that Coinbase UK's AML/CTF controls were "inadequate" and that the firm had failed to take "reasonable care" to prevent money laundering and terrorist financing. The FCA's fine is the latest in a series of regulatory actions against cryptocurrency firms in the UK. In recent months, the FCA has also fined Binance and Kraken for AML/CTF breaches. The FCA's actions are a reminder that cryptocurrency firms must comply with the same AML/CTF regulations as traditional financial institutions. Failure to comply can result in significant fines and other penalties.

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