The post CoinList Settles OFAC’s Sanctions Allegations for $1.2 Million appeared on BitcoinEthereumNews.com.

Crypto exchange CoinList has agreed to pay $1.2 million to settle allegations by the U.S. Office of Foreign Assets Control (OFAC) that it permitted users in Crimea, a region annexed by Russia from Ukraine, to access its platform. The settlement sheds light on the complex compliance landscape that crypto exchanges must navigate, particularly concerning international sanctions and geopolitical conflicts. OFAC’s investigation revealed that CoinList had inadvertently opened 89 accounts for customers based in Crimea. Although these users initially claimed to be from non-embargoed countries, they provided addresses located in Crimea during the account opening process. The discrepancy was not detected by CoinList’s screening protocols, which failed to recognize that a Crimea address indicated residence in an embargoed region. The significance of OFAC’s enforcement action The situation in Crimea has been a point of international contention since Russia’s invasion in 2014. Most countries, including the United States, continue to regard Crimea as part of Ukraine and have imposed sanctions on Russia as a result. The enforcement action against CoinList underscores the critical importance of compliance with these sanctions in the global financial and crypto industries. OFAC noted that the fine imposed on CoinList was significantly lower than the maximum potential penalty of nearly $327 million. The reduction was due to factors such as CoinList’s past compliance history, its cooperation during the investigation, and the relatively small number of transactions involved compared to the exchange’s total volume. CoinList’s response and future compliance investments Responding to the settlement, CoinList has expressed its intention to view it as a learning opportunity and to further invest in compliance measures. The exchange has committed to investing $300,000 in compliance controls, one of the largest investments by a crypto company in its position. The move highlights CoinList’s dedication to upholding stringent compliance standards and adapting its operations…

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Filed under: News - @ December 14, 2023 5:22 pm