British FCA Fines Coinbase UK

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The Financial Conduct Authority has imposed a fine of just over 3.5 million British pounds ($4.5 million) on CB Payments Limited, a subsidiary of Coinbase Group, for repeatedly violating a requirement that prohibited the company from offering services to high-risk customers.

Despite the imposed restrictions, CBPL continued to onboard and provide e-money services to 13,416 high-risk customers, resulting in around USD $24.9 million in deposits.

These funds were used for withdrawals and multiple crypto asset transactions through other entities under the Coinbase Group, totaling approximately USD $226 million.

According to the FCA, CBPL’s failure to effectively implement and monitor necessary controls to comply with the voluntary requirement showed a lack of diligence and responsibility.