Coinbase, a cryptocurrency trading exchange that is publicly traded and situated in the United States, has agreed to pay a fine of $50 million to the New York State Department of Financial Services. This comes after it was discovered that the exchange allowed users to register accounts without doing necessary background checks, in violation of anti-money-laundering regulations.
In addition to this, the U.S. exchange also needs to invest $50 million to strengthen its compliance program, which is intended to deter drug dealers, child pornographers, and other potential lawbreakers from opening accounts. Coinbase will be required to comply with the terms of the settlement with the New York State Department of Financial Services, which was announced on Wednesday.
The once-booming industry of trading cryptocurrencies around the world has taken another blow. Several cryptocurrency companies have declared bankruptcy in the previous 12 months, the most prominent of which being FTX, the world’s second-largest crypto exchange before it shut down in November. The founder, Sam Bankman-Fried, along with several other high-ranking FTX employees, is now being charged with federal crimes.
This is a developing story and is being frequently updated.
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