On 4 January 2023, a consent order was issued to Coinbase Inc. (“Coinbase”), a crypto exchange platform, by the New York Department of Financial Services (the “NYDFS”) for conducting its business in an unsafe and unsound manner. Following investigation, the NYDFS discovered that…

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Crypto exchanges are facing increased scrutiny in terms of their compliance controls and potential violations of reporting requirements. The consent order with Coinbase is an example for firms who operate in the crypto space to maintain and implement compliance programs that work, such as stronger AML programs, as well as procedures to detect, prevent, and report suspicious activity.

To read the full consent order click here.

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