Cryptocurrency exchange Coinbase will pay a $50 million fine for violating money laundering laws by financial regulators.
Strict inspections have begun on the cryptocurrency market and cryptocurrency exchanges. Major crypto exchanges are under constant scrutiny by countries’ regulators. Troubled processes experienced by FTX last year accelerated legal processes and regulators. According to the news by the New York Times, the cryptocurrency exchange Coinbase has turned from the pole. The public exchange has agreed to pay a $50 million penalty for violating money laundering laws by regulators.
Coinbase Compressed By New York Regulators!
Coinbase, the only public crypto exchange, has come under the radar for allowing customers to open accounts without adequate background checks. The New York Regulator has determined that there are violations of money laundering laws. The public exchange agreed to pay a $50 million penalty after this determination.
Coinbase has entered into an agreement with the New York State Department of Financial Services. Under this deal, he will have to pay a $50 million penalty and $50 million to invest in improving the compliance process.
The deal will require Coinbase to invest $50 million to support its compliance program, which is expected to deter drug traffickers, child abusers, and other potential vigilantes from opening accounts in New York.
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