Coinbase to pay $100 million to settle New York state investigation By Reuters

© Reuters. A illustration of the cryptocurrency is seen in entrance of Coinbase emblem on this illustration taken, March 4, 2022. REUTERS/Dado Ruvic/Illustration

WASHINGTON (Reuters) -U.S.-based cryptocurrency change Coinbase (NASDAQ:) World Inc has reached a $100 million settlement with New York’s Division of Monetary Providers (DFS), the change 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 stop cash laundering.

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

The agency has taken “substantial measures” to handle what it referred to 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 change, 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 world crypto exchanges, has been below 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.