Coinbase to pay $100 mln to settle New York state investigation

WASHINGTON, Jan 4 (Reuters) – U.S.-based cryptocurrency alternate Coinbase International Inc (COIN.O) has reached a $100 million settlement with New York’s Division of Monetary Companies (DFS), the alternate and the regulator mentioned in statements on Wednesday.

The settlement, which features a $50-million penalty, caps the regulator’s investigation into the agency’s compliance with necessities to forestall cash laundering.

DFS discovered Coinbase handled its onboarding necessities for purchasers as a “easy check-the-box” and had not completed ample background checks, DFS mentioned in an announcement.

The agency has taken “substantial measures” to deal with what it known as “historic shortcomings,” Paul Grewal, Coinbase’s chief authorized officer, mentioned in an announcement.

Coinbase can pay one other $50 million to spice up compliance efforts geared toward blocking potential criminals from utilizing the alternate, it mentioned. The deal additionally requires Coinbase to work with a third-party monitor.

The New York Occasions first reported the settlement.

Coinbase, a publicly-traded agency and one of many largest international crypto exchanges, has been beneath scrutiny from DFS and different regulators. It has beforehand disclosed receiving investigative subpoenas and requests from the U.S. Securities and Trade Fee for paperwork and data.

Reporting by Susan Heavey, Hannah Lang and Jonathan Stempel
Further reporting and writing by Chris Prentice
Enhancing by Mark Potter

Our Requirements: The Thomson Reuters Belief Ideas.