As claimed by the New York State Department of Financial Services, the digital currency trading platform, Coinbase is ceaselessly swerving from its internal policy and failing to comply with laws and regulations. These failures include anti-money laundering programs, transaction monitoring, etc.
Based on this allegation, the Superintendent of DFS announced a $100 million settlement on Wednesday. 50% of the amount they demanded as a penalty and the remaining to leverage in compliance efforts.
DFS enrolls many activities on this platform as fishy and illicit, which are marked as a result of a feeble compliance program.
The regulators of the New York State Department of Financial Services further claimed that the enfeebled compliance program also allows traders to access them regardless of their background and histories. For instance, a trader accused of child sexual abuse was found strolling relentlessly on their platform for two years, making transactions presumed to be generated from unethical perpetration. Coinbase is found identifying and flagging the user after two years, which also intervenes in anti-money laundering requirements.
The shares of Coinbase, the only digital currency trading platform where the trading is done publicly, stood over 12% right after the DFS announcement.
- Published By Team Nation Press News