San Francisco office of Coinbase Inc., one of the most popular virtual currency trading platforms. Photo: Michael Short/Bloomberg Coinbase to Pay $50 Million Penalty for Compliance Failures After Regulator's Investigation
In the course of its investigation, the Division of Financial Services found that the Coinbase "know your customer" program was "immature and inadequate." State regulators and the trading platform have installed a monitor to ensure compliance.
January 04, 2023 at 06:03 PM
3 minute read
The original version of this story was published on New York Law Journal
New York's Department of Financial Services Superintendent Adrienne Harris on Wednesday announced that the cryptocurrency platform Coinbase will pay a $50 million penalty for compliance failures that violated state law and regulations.
Harris also announced that DFS in early 2022 installed an independent monitor to work with Coinbase on compliance issues. Under the terms of the settlement, the independent monitor will work with Coinbase for another year and Coinbase will invest $50 million in its compliance program pursuant to a plan approved by DFS, Harris said.
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