Coinbase, a prominent player in the cryptocurrency industry, faced a significant setback as the UK’s Financial Conduct Authority (FCA) imposed a hefty fine of £3.5 million ($4.5 million) on its subsidiary, CB Payments Limited (CBPL). The fine was the result of CBPL’s repeated violations of the FCA’s Anti-Money Laundering guidelines. Despite agreeing to strengthen its financial crime control policies after a regulatory visit in October 2020, CBPL failed to comply with the recommended controls. The FCA discovered that CBPL continued to onboard and serve 13,416 high-risk customers, leading to the facilitation of financial crime on the platform.
In stark contrast to Coinbase’s troubles, Revolut, another player in the crypto industry, celebrated a significant milestone as it received a restricted banking license from the UK’s Prudential Regulation Authority (PRA). This achievement came after more than three years of effort, positioning Revolut in the mobilization stage as a bank. Francesca Carlesi, UK CEO of Revolut, expressed the firm’s commitment to offering products and services that enhance the financial lives of its customers. The licensing marks a new chapter in Revolut’s journey as a challenger bank that has made strides in the crypto industry.
Revolut’s dedication to innovation in the crypto industry is evident in its recent launch of Revolut X, a standalone crypto exchange tailored for retail customers. This move showcases Revolut’s commitment to providing its users with access to crypto assets and trading opportunities in a user-friendly and secure platform. The introduction of Revolut X aligns with the firm’s mission to democratize finance and empower individuals to participate in the digital economy.
The contrasting fortunes of Coinbase and Revolut in their interactions with UK authorities highlight the importance of regulatory compliance and strategic vision in the crypto industry. While Coinbase faced fines and regulatory scrutiny for compliance failures, Revolut secured a significant milestone with its banking license and continued innovation in the crypto space. These developments underscore the evolving landscape of the crypto industry and the critical role of regulatory adherence and innovation in shaping the future of digital finance.
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