UK Fines Coinbase Subsidiary for Licence Violations

Liputan6.com, Jakarta – The UK Financial Conduct Authority (FCA) announced that it has imposed a fine of 3.50 million pounds or Rp 73.4 billion on CB Payments Ltd, which is part of the Coinbase group. This fine was given because it was discovered that the subsidiary of Coinbase had violated business terms.

CB Payments Limited (CBPL) has been fined £3,503,546 by the Financial Conduct Authority (FCA) for repeated breaches of requirements preventing the firm from offering services to high-risk customers,” the FCA said, as quoted by News.bitcoin.comSaturday (26/7/2024).

CB Payments Limited, also known as “Coinbase Payments,” does not directly handle crypto asset transactions for customers.

The company serves as a gateway for customers to trade crypto assets through other entities within the Coinbase Group.

Reportedly, CB Payments Limited is not currently registered to conduct crypto asset activities in the UK.

In October 2020, CB Payments Limited agreed to voluntary terms with the FCA, which prohibit it from accepting new high-risk clients until it resolves its compliance issues.

“Despite the restrictions in place, CB Payments Limited accepted and/or provided electronic money services to 13,416 high-risk customers,” the FCA said.

The FAC further revealed that approximately 31% of these customers deposited approximately USD 24.9 million, which was used to make withdrawals and then execute several crypto asset transactions through other Coinbase Group entities, totaling approximately USD 226 million.

The UK regulator said the breach, which was caused by inadequate control measures, went undetected for almost two years.

Therese Chambers, joint executive director of the FCA, underlined the seriousness of the financial crime risks in the crypto sector and the need for firms to maintain robust controls.

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