FCA's Coinbase UK Fine: A 'One-Off,' Says Expert

IconCryptoNewsTerminal Staff30 Jul, 2024

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FCA's Coinbase UK Fine: A 'One-Off,' Says Expert

FCA's multi-million pound fine imposed on Coinbase's UK arm is not indicative of a wider crackdown on the crypto industry, according to experts. The Financial Conduct Authority (FCA) recently fined Coinbase Payments Limited £3.5 million ($4.5 million) for failing to comply with anti-money laundering regulations. This led to speculation that the FCA was taking a tougher stance on the crypto sector. However, several legal experts believe that the FCA's actions are not part of a wider campaign against the crypto industry. They point out that the FCA has not used its enforcement powers against other crypto companies in the past. "The fact that the FCA has not used its enforcement powers until now suggests that it takes a 'softly, softly' approach to regulation," said Charlotte Tregunna, a partner at Peters & Peters, a specialist business crime law firm. "It surely has had ample opportunity to police the space over the past three years." Tregunna believes that the FCA wants to be seen as a "crypto-friendly regulator within reason." She said that the FCA is likely to take a more proactive approach to regulation in the future, but that it is not likely to launch a full-scale crackdown on the crypto industry.

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