Bitcoin Exchange Coinbase Agreed With New York Regulators! “She Will Pay $100 Million!”

USA’s largest cryptocurrency exchange Coinbaseagreed to pay fines for violating money laundering laws by financial regulators.

Coinbase, which has reached an agreement with the New York Financial Regulators, will pay a $100 million fine.

Coinbase will pay a $50 million fine under the deal, and $50 million will be spent on improving compliance.

New York State Department of Financial ServicesThe deal with Coinbase will allow Coinbase to invest $50 million in support of its compliance program, which is expected to deter drug traffickers, child pornography dealers, and other potential criminals from opening accounts in New York.

Regulators had found that Coinbase had violated money laundering laws, allowing customers to open accounts without adequately investigating their background.

Initially, Coinbase hired an independent consultant to identify customers, monitor customer behavior for suspicious activity, and meet requirements set by anti-money laundering laws.

However, this advisor also did not resolve Coinbase’s identified issues, and regulators launched a formal investigation in 2021.

Noting that Coinbase has backlog in terms of customer transactions, regulators have found that Coinbase only performs the simplest know-your-customer checks before allowing people to open accounts.

In this context, regulators stated that Coinbase’s procedures for reviewing customers’ backgrounds were very inadequate.