Two
crypto
companies,
Coinbase
and
Revolut,
suffered
contrasting
fortunes
in
the
hands
of
the
UK
authorities
during
the
past
week.
Coinbase
fined
The
UK’s
Financial
Conduct
Authority
(FCA)
fined
CB
Payments
Limited
(CBPL),
a
subsidiary
of
Coinbase
Group,
£3.5
million
($4.5
million)
for
breaches
related
to
Anti-Money
Laundering.
In
a
July
23
notice,
the
FCA
explained
that
the
fine
resulted
from
CBPL’s
repeated
violations
of
its
guidelines.
Initially,
the
fine
was
£5
million,
but
due
to
a
settlement
discount,
it
was
reduced
by
30%
to
£3.5
million.
In
October
2020,
the
CBPL
agreed
to
strengthen
its
financial
crime
control
policies
following
a
regulatory
visit.
This
agreement
included
a
commitment
to
not
accept
new
high-risk
customers
without
adhering
to
FCA
guidance.
However,
the
FCA
found
that
CBPL
continued
to
onboard
and
serve
13,416
high-risk
customers.
Approximately
31%
of
these
customers
deposited
nearly
$24.9
million
on
the
platform,
which
was
then
used
on
other
Coinbase
platforms
for
crypto
transactions
totaling
$226
million.
Consequently,
the
FCA
determined
that
CBPL
failed
to
comply
with
the
recommended
controls.
The
regulator
stated:
“The
failings
significantly
increased
the
risk
that
financial
crime
might
be
facilitated
by
the
Firm
at
a
time
when
the
Authority
had
informed
CBPL
that
its
systems
and
controls
were
not
fully
effective
and
required
remediation.”
Revolut
licensed
On
July
25,
Revolut
announced
it
received
a
restricted
banking
license
from
the
UK’s
Prudential
Regulation
Authority
(PRA),
which
oversees
the
banking
sector.
The
license
comes
more
than
three
years
after
Revolut
first
applied
in
2021
and
initially
places
the
firm
in
the
mobilization
stage.
Francesca
Carlesi,
UK
CEO
of
Revolut,
said:
“It
is
a
tremendous
responsibility
to
be
a
bank
in
the
UK
and
we
will
work
relentlessly
to
offer
products
and
services
that
improve
the
financial
lives
of
everyone
who
uses
Revolut.”
Revolut
is
a
challenger
bank
that
has
made
significant
strides
in
the
crypto
industry.
In
May,
the
firm
launched
Revolut
X,
a
standalone
crypto
exchange
designed
for
retail
customers.
Notably,
the
company
recently
published
its
financial
accounts
for
last
year,
showing
that
its
revenues
surpassed
$2
billion
and
recorded
profits
before
tax
of
$545
million.
Mentioned
in
this
article
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Author: Oluwapelumi Adejumo
