Coinbase is required to pay a fine of $50,000,000

The New York State Department of Financial Services ordered Coinbase to pay a $50,000,000 fine. The reason for this decision was to provide the exchange with the opportunity for its customers to register accounts without the necessary verification of personal data.

Thus, the platform violated the framework of the anti-money laundering program and thus contributed to the development of criminal activity.

In addition to paying a fine of $50,000,000 to Coinbase, they will still need to invest the same amount of funds in order to improve the security system of the cryptocurrency platform. This will further help fight crime and reduce the number of attackers who were previously able to launder money through Coinbase.

After the platform meets all the requirements set by the New York City Department of Financial Services, Coinbase will be able to continue its operation without any problems. Similar problems at the site arose in 2020. State regulators have found security issues with the cryptocurrency exchange that may have contributed to crime through money laundering.

The top management of the cryptocurrency platform said that they would use the services of an independent consultant in order to restructure day-to-day operations. They were going to comply with the requirements set to them, but ultimately the security measures were not strengthened.

Ultimately, regulators from the New York City Department of Financial Services launched an investigation in 2021 to fix a breach in Coinbase's security holes. Now it has become known that the platform is forced to spend $ 100,000,000, half of which will be paid as a fine, and the other spent on improving security.