cryptonews: Coinbase has announced a $100 million settlement with New York financial regulators over widespread shortcomings in its compliance systems — revealed by its tremendous growth during the bull market of 2020 and 2021.👀
Coinbase has announced a $100 million settlement with New York financial regulators over widespread shortcomings in its compliance systems — revealed by its tremendous growth during the bull market of 2020 and 2021.
Coinbase, whose shares have lost 85% during the bear market, was up nearly 14% after announcing the settlement on Wednesday. Coinbase was one of the first exchanges to obtain an NYDFS BitLicense, widely considered the gold standard in U.S. crypto regulation."Over the course of 2021, it became clear that Coinbase's compliance system was inadequate to handle the growing volume of Coinbase's business, a situation that was exacerbated by tremendous growth in its customer base," the NYDFS said — noting its "monthly transactions in November 2021 were 25 times January 2020 levels.
By the end of 2021, Coinbase's backlog of unreviewed transaction monitoring alerts had ballooned to more than 100,000. The backlog of customers requiring extra scrutiny "exceeded 14,000," the New York regulator added.Running through a list of compliance upgrades and systems the company has built in the past two years, Coinbase chief legal officer Paul Grewal said the company believes that its "investment in compliance outpaces every other crypto exchange anywhere in the world.
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