Regulatory Troubles for Coinbase and Revolut
Two prominent crypto companies, Coinbase and Revolut, faced different outcomes when dealing with UK authorities in the past week.
Coinbase Hit with Fine
The UK’s Financial Conduct Authority (FCA) imposed a £3.5 million ($4.5 million) fine on CB Payments Limited (CBPL), a subsidiary of Coinbase Group, for breaching Anti-Money Laundering regulations. The FCA revealed in a notice on July 23 that CBPL had repeatedly violated its guidelines, leading to the fine. Originally set at £5 million, the fine was reduced by 30% to £3.5 million due to a settlement discount.
Following a regulatory inspection in October 2020, CBPL had agreed to enhance its financial crime control measures, including a pledge to not onboard new high-risk customers without complying with FCA directives. However, the FCA discovered that CBPL had onboarded and served 13,416 high-risk customers despite this commitment. These customers deposited around $24.9 million on the platform, which was then transferred to other parts of the Coinbase platform.
Recent FCA fine for CBPL
The Financial Conduct Authority (FCA) has fined CBPL, a financial services firm, for failing to comply with recommended controls for crypto transactions totaling $226 million. The FCA found that the firm’s lack of controls significantly increased the risk of financial crime.
Revolut receives banking license
On July 25, Revolut announced that it had received a restricted banking license from the UK’s Prudential Regulation Authority (PRA) after more than three years of application. This license places Revolut in the mobilization stage, with UK CEO Francesca Carlesi emphasizing the responsibility of being a bank in the UK.
The Rise of Revolut X in the Crypto Industry
Revolut, a fintech company known for its innovative banking services, has made a significant impact in the crypto industry. In May, the company introduced Revolut X, a dedicated crypto exchange platform tailored for retail investors. This move has cemented Revolut’s position as a key player in the digital asset space.
The recently published financial report for the company reveals impressive numbers, with revenues exceeding $2 billion and profits before tax reaching $545 million. These figures underscore Revolut’s success and growth in the competitive fintech sector, solidifying its reputation as a leading financial services provider.
Revolut’s foray into the crypto market with Revolut X demonstrates its commitment to offering cutting-edge solutions for its customers. As the demand for digital assets continues to rise, Revolut’s strategic initiatives and strong financial performance position it as a frontrunner in the evolving landscape of finance and technology.