Coinbase Unit Fined by UK For Taking on High Risk Customers (1)

A unit of Coinbase Global Inc. was fined £3.5 million ($4.5 million) by the UK for offering cryptoasset trading services to high risk customers — in the first move of its kind from the regulator that’s grappling with money laundering controls in digital currencies.

The Financial Conduct Authority said Thursday that CB Payments Limited had repeatedly broken a voluntary agreement by providing services to 13,416 high risk customers, with around 31% of them depositing $25 million. The funds were then used to make transactions via Coinbase Group entities worth around $226 million, they said.

“We believe our investment in compliance ...