Aiying reported that Coinbase's British subsidiary CB Payments Limited (CBPL) was fined $450 million by the UK Financial Conduct Authority for poor anti-money laundering controls.
CBPL is a regulated electronic money institution (EMI) that acts as a gateway for UK customers to trade crypto assets between Coinbase Group entities. In late 2020, the company agreed to strengthen anti-money laundering controls and no longer accept high-risk customers in the UK after a warning from the UK Financial Conduct Authority. However, the financial regulator claims that CBPL subsequently provided electronic money services to approximately 13,000 "high-risk" customers over a two-year period, receiving approximately $31 million from 2490% of these customers.
It is reported that this is the first time that the UK Financial Conduct Authority has taken enforcement action against cryptocurrency-related companies under the Electronic Money Regulations 2011. The regulations are generally aimed at regulating small businesses engaged in digital payment services.