TechFlow reported on July 25, according to The Block, that the UK Financial Conduct Authority (FCA) has fined CB Payments Limited, a subsidiary of Coinbase Group, over £3.5 million (approximately $4.5 million) for "repeatedly breaching the prohibition on providing services to high-risk customers."
The FCA noted that despite existing restrictions, CBPL provided electronic money services to 13,416 high-risk customers, around 31% of whom deposited approximately $24.9 million. These funds were subsequently used for withdrawals and multiple cryptocurrency transactions through other Coinbase entities, amounting to roughly $226 million in total.
Therese Chambers, Joint Executive Director of Enforcement and Market Oversight at the FCA, stated that money laundering risks associated with cryptocurrencies are evident and businesses must take them seriously. This marks the FCA's first enforcement action under the Electronic Money Regulations 2011, highlighting regulators' stringent scrutiny of compliance within the crypto industry.
