Coinbase Will Pay $50 Million To Settle A New York State Investigation And Will Invest $50 Million I

WASHINGTON, Jan 4 (Reuters) - The U.S. Coinbase Inc (COIN.O), a cryptocurrency exchange located in the United States, announced a $100 million settlement with New York's Department of Financial Services (DFS) on Wednesday.

The settlement, which includes a $50 million penalty, concludes the regulator's inquiry into the firm's compliance with anti-money laundering standards.

According to the SEC, Coinbase considered its user onboarding requirements as a “simple check-the-box” and had not conducted appropriate background checks.

“Coinbase failed to establish and maintain a robust compliance program that could keep pace with its expansion. ”The Coinbase platform was exposed to possible illegal conduct as a result of that breakdown, stated New York DFS Superintendent Adrienne Harris.

According to Paul Grewal, Coinbase's chief legal officer, the exchange has rectified the issues.

Coinbase said in a blog post that the inquiry focused on the company's compliance procedures in 2018 and 2019, as well as the compliance backlogs as the exchange expanded in 2021.

“We took NYDFS's concerns seriously and have taken significant steps to remediate these previous deficiencies,” according to the blog post.

Coinbase, a publicly listed business and one of the major worldwide crypto exchanges, will spend an additional $50 million to increase compliance measures targeted at preventing prospective criminals from utilizing the exchange, according to the company. The agreement also compels Coinbase to collaborate with a third-party monitor.

The settlement was originally reported by the New York Times.

DFS and other agencies have been looking into Coinbase. It has previously revealed receiving investigation subpoenas and demands for documents and information from the US Securities and Exchange Commission.

Stay tuned for more news.

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