Coinbase Conundrum – Coinbase, Cryptos Latest Struggle 😬

Coinbase Conundrum – Coinbase, Cryptos Latest Struggle

Coinbase, one of the largest cryptocurrency exchanges in the United States, has reached a settlement with the New York Department of Financial Services (NYDFS) for $100 million. The NYDFS had charged Coinbase with violating New York’s virtual currency regulations and failing to maintain an effective anti-money laundering program. According to the NYDFS, Coinbase had engaged in “falsely reporting” the prices of cryptocurrencies and “unlawfully” operating as an unlicensed money transmitter in New York. The NYDFS also accused Coinbase of failing to implement sufficient internal controls to detect and prevent the use of its platform for money laundering.

As part of the settlement, Coinbase has agreed to implement a comprehensive set of policies and procedures to ensure compliance with New York’s virtual currency regulations. This includes strengthening its anti-money laundering program and implementing measures to prevent using its platform for illegal activity. In addition, Coinbase will be required to hire a Compliance Officer to oversee its operations in New York. Coinbase CEO Brian Armstrong said in a statement that the company is “pleased” to have reached a settlement with the NYDFS, and is committed to working with regulators to ensure compliance with all applicable laws and regulations. Armstrong also apologized for any past mistakes the company may have made and said that Coinbase is committed to “building the best possible platform for our customers.” The settlement with the NYDFS is just the latest regulatory challenge that Coinbase has faced. The company has also been the subject of investigations by the Internal Revenue Service (IRS) and the Department of Justice (DOJ) in the United States, as well as regulatory agencies in other countries.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.