UK regulator fines exchange Coinbase $4.5 million

Despite an agreement with the FCA to limit the acceptance of new high-risk customers, CBP breached the agreement by serving more than 13,400 people from this category. The FCA estimates that more than 30% of these customers made deposits of about $25 million. The amount of funds used by customers for cryptocurrency transactions and withdrawals through Coinbase affiliates totaled $226 million.

The British regulator attributed CBP's violations to a lack of proper expertise in developing, testing and implementing monitoring tools. After the first compliance review, “Coinbase's deficiencies” went undetected for two years, the agency lamented.

The exchange agreed to fix the problem, so it can expect a 30% reduction in the fine. Still, it took a toll on Coinbase's stock - it fell nearly 5% to $245 apiece.

A few years ago, Coinbase agreed to pay a $6.5 million fine to the U.S. Commodity Futures Trading Commission (CFTC) for providing false reports on transactions with digital assets.