Coinbase has been hit with a $50 million fine by regulators for violating anti-money laundering laws.
In addition to the fine, Coinbase has committed to investing an additional $50 million in improving its compliance processes.
The issue of cryptocurrencies being used for illegal activities such as money laundering has gained increasing attention from regulators globally.
For example, the UK National Crime Agency recently announced the creation of a specialized unit to tackle such crimes.
The American exchange has agreed to a total settlement of $100 million with regulators after it was found to have compliance problems with anti-money laundering laws.
The company initially hired independent consultants to address the issue, but problems persisted and Coinbase faced formal investigations in 2021.
According to The New York Times, Coinbase had a backlog of over 100,000 alerts about potential suspicious customer transactions that were not being properly examined.