Coinbase & NYDFS to settle compliance investigation
The New York Department of Financial Services (NYDFS) has officially announced a consent order in which it will engage its efforts in unraveling factors supposedly overlooked in the case of the compliance program Coinbase. The factor included in this consent order is the levy of a penalty amounting to $50 million on Coinbase.
Reliable sources in Coinbase, in the meanwhile, inform that they are supporting the NYDFS’s investigation in every way possible with regard to their one-of-its-kind compliance program. They also state that they are very much aware of the department’s worries and confusion over the investigations in relation to their 2018-2019 compliance program, along with the compliance backlogs, which seemingly happened to have increased with the growth of the company in the year 2021. They are now absolutely committed to adequately resolving all of the pending issues.
The consent order mentions a penalty amount of $50 million, and Coinbase, on its own part, has taken a pledge to pump in an amount of $50 million in terms of investments in the compliance program covering a period of the following two years. According to sources from Coinbase, it has always been their endeavor to be completely supportive regarding all issues related to key regulators, along with their own role-play. They have always believed in making the crypto arena safe and secure for all concerned.
To know more about the safety measures being undertaken as part of this compliance program, read our Coinbase review. For the last two years, besides all other activities related to investments made, they have managed to create crypto-focused AML, together with sanctions compliance tools, like in the case of blockchain analytical tools, the Coinbase Tracer, and the proprietary interdiction solution. They have also carried out required modifications on their automated Transaction Monitoring System (TMS), which helps in analyzing all transactions made on the Coinbase platform for security-related issues.
Further to that, they have also been successful in developing a proprietary Customer Risk Scoring (CRS) method in order to measure risk ratings. The creation of an Enhanced Due Diligence (EDD) program, which aims at high-risk customers, is another one of their achievements. Followed by all of this is also the launch of the Travel Rule Universal Solution Technology (TRUST), which happens to be an industry-boosted solution.
In the opinion of the team at Coinbase, they are extremely pleased to be partnering with NYDFS and that they depend on them for resolving all issues related to all kinds of crimes committed in the crypto arena. In their collective viewpoint, Coinbase has always been and will remain committed to making its individual mark as a trendsetter and example in the whole of the crypto corner. They simply owe it to all of their loyal customers.
