Coinbase UK subsidiary fined $4.5 million by FCA

CB Payments Limited, a part of Coinbase Group, has been fined just over 3.5 million British pounds ($4.5 million) by the Financial Conduct Authority for "repeatedly breaching a requirement that prevented the firm from offering services to high-risk customers."

"Despite the restrictions in place, CBPL onboarded and/or provided e-money services to 13,416 high-risk customers," the FCA said in a press release .

"Approximately 31 per cent of these customers deposited around USD $24.9 million," it added, noting: "These funds were used to make withdrawals and then execute multiple cryptoasset transactions via other Coinbase Group entities, totaling approximately USD $226 million."

The FCA claims CBPL lacked "due skill, care and diligence in the design, testing, implementation and monitoring of the controls put in place" to effectively meet the voluntary requirement.

The FCA's joint executive Director of Enforcement and Market Oversight, Therese Chambers, claimed "the money laundering risks associated with crypto are obvious" and noted that "firms must take them seriously."

This is the first time the FCA has taken enforcement action under the Electronic Money Regulations 2011.