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CB Payments Ltd. (CBPL), a payment processor associated with cryptocurrency exchange Coinbase Global (Nasdaq: CoinThe UK regulator said it had been fined 3.5 million pounds ($4.5 million) by the Financial Conduct Authority for repeated breaches of requirements that prevent electronic money institutions from providing services to high-risk customers. said Thursday.
London-based CBPL does not offer crypto services, although it acts as a gateway for customers to trade cryptocurrencies through other entities within Coinbase (COIN). CBPL is authorized by FCA.
In October 2020, CBPL signed up to a voluntary requirement following extensive engagement with the FCA over concerns about the effectiveness of CBPL’s financial crime control framework.
But the FCA noted that CBPL still had 13,416 high-risk customers, about 31% of whom had deposited about $24.9 million. The funds were used to withdraw and then execute multiple crypto transactions through other Coinbase (COIN) entities, totaling approximately $226 million.
The FCA said in a statement that the breaches were due to CBPL’s “lack of due skill, care and diligence in designing, testing, implementing and monitoring existing controls”.
CBPL agreed to resolve the issue and was eligible for a 30% discount on the fine.
