The New York Department of Financial Services (NYDFS) made the announcement on January 4 that they had come to a deal to end their investigation, which had been centered on Coinbase‘s prior compliance program concerns.
The New York Department of Financial Services (NYDFS) has issued a consent order that highlights the agency’s concerns over Coinbase’s 2018-2019 compliance program and the compliance backlogs that developed alongside the company’s expansion in 2021.
Coinbase asserts that it takes the concerns raised by the NYDFS seriously and has made significant steps to fix these previous weaknesses in its services.
In addition to that, the penalty for violating the consent order is set at $50 million. The cryptocurrency exchange based in the United States has also pledged to spend $50 million in compliance program initiatives over the course of the next two years.
According to Coinbase’s statement, the company views this settlement as an important milestone in its dedication to ongoing development, its interaction with relevant authorities, and its quest for better compliance in the cryptocurrency field – for both itself and others.
Coinbase says:
“Coinbase remains committed to being a leader and role model in the crypto space, and this means partnering with regulators when it comes to compliance and other areas. We believe our investment in compliance outpaces every other crypto exchange anywhere in the world, and that our customers should feel safe and protected while using our platforms.”
In related developments, Coinbase’s documentary with Amazon is now ready for everyone to watch. As CEO Brian Armstrong explained, the documentary will showcase the behind the scenes true story of how he and his team grew Coinbase from prototype to public company.
