Coinbase Stock (NASDAQ:COIN)
The cryptocurrency exchange Coinbase (NASDAQ:COIN), located in the United States, has reached a settlement with the Department of Financial Services (DFS) of the state of New York $100 million, according to comments released on Wednesday by both the exchange and the regulator. Despite that, Coinbase stock surged.
The regulator’s examination into the company’s compliance with obligations to prevent money laundering has been concluded due to the settlement, which includes a penalty of fifty million dollars.
The department determined that Coinbase handled its client onboarding procedures as a “simple check-the-box,” The regulator claimed that the company had not done appropriate background checks.
“Coinbase was unable to construct and keep operational a compliance program capable of keeping up with the company’s rapid expansion.” Because of this mistake, the Coinbase platform was left open to the possibility of being used in illegal conduct, according to the New York DFS Superintendent Adrienne Harris.
According to a statement released by Coinbase’s chief legal officer Paul Grewal, the exchange issues have been resolved.
According to a statement on the business’s blog, Coinbase said that the inquiry focused on the company’s compliance program throughout the years 2018 and 2019, as well as the compliance backlogs that occurred as the exchange expanded in 2021.
According to the statement made in the blog post, “We took NYDFS’s concerns seriously and have taken extensive efforts to remediate these previous deficiencies.”
According to the announcement made by the business, the publicly listed company Coinbase stock, also one of the biggest cryptocurrency exchanges in the world, will spend an additional fifty million dollars to enhance compliance measures to prevent prospective criminals from utilizing the exchange. Coinbase must also collaborate with a third-party monitor as part of the contract.
The news of the settlement was first published in the New York Times.
Coinbase is now being investigated by the DFS and other regulatory agencies. It has previously stated that it has been served with investigation subpoenas and requests for documents and information by the United States Securities and Exchange Commission.
Featured Image: Unsplash @ regularguy.eth
Author Shariq Khan 
