• Coinbase stocks rose 12% following a $100 million settlement with US regulators.
• The settlement was reached after Coinbase was accused of enabling customers to open accounts without conducting necessary background checks.
• Coinbase is required to invest $50 million into its compliance program over the next three years.
Coinbase, one of the most renowned cryptocurrency exchanges, has recently reached an agreement with the New York Department of Financial Services (NYDFS) following accusations of not conducting necessary background checks before allowing customers to open accounts. The settlement requires Coinbase to pay a $50 million penalty and invest $50 million into its compliance program over the next three years.
The NYDFS stated that Coinbase violated the New York Banking Law and the New York State Department of Financial Services (DFS) virtual currency, money transmitter, transaction monitoring, and cybersecurity regulations. In response to the accusation, Coinbase said that it is cooperating with the investigation and that it is committed to continuing to provide a safe and secure platform for its customers.
Following the resolution of the investigation, Coinbase’s stocks have risen by 12%. This is a significant increase for the company, as its stocks had already been on a steady rise in recent months. The company’s stocks had risen by more than 50% since the beginning of 2021, and this news has only added to the positive sentiment surrounding Coinbase.
The settlement is seen by many as a sign of increasing confidence in Coinbase from regulators. This is a welcome development for the cryptocurrency industry, as it could pave the way for more regulation and legitimization of cryptocurrencies. Coinbase’s compliance program is expected to ensure that the company is compliant with all applicable laws and regulations.
Coinbase’s commitment to compliance is a major step forward for the cryptocurrency industry and could help bring more institutional investors into the sector. This could lead to increased liquidity and more mainstream adoption of cryptocurrencies.
Overall, this news is seen as a positive development for Coinbase and the cryptocurrency industry. The resolution of the investigation and the subsequent increase in Coinbase’s stocks is a strong sign of the increasing legitimacy of cryptocurrencies. Coinbase’s commitment to compliance is a major step forward for the industry and could potentially lead to increased mainstream adoption of cryptocurrencies.