<p><span>New York Attorney General Letitia James today announced </span><a title="https://ag.ny.gov/sites/default/files/2023-05/OAG-Crypto-Bill 0.pdf" target=" blank" rel="noopener" href="https://ag.ny.gov/sites/default/files/2023-05/OAG-Crypto-Bill 0.pdf">landmark legislation to tighten regulations on the cryptocurrency industry</a><span> to protect investors, consumers, and the broader economy. The multi-billion-dollar industry lacks robust regulations, making it prone to dramatic market fluctuations, and has been used to hide and facilitate criminal conduct and fraud. Attorney General James’ program bill, which proposes the strongest and most comprehensive set of regulations on cryptocurrency in the nation, would increase transparency, eliminate conflicts of interest, and impose commonsense measures to protect investors, consistent with regulations imposed on other financial servi
On January 4, 2023, the New York State Department of Financial Services issued a consent order against Coinbase, a virtual currency company. Pursuant to the consent order, Coinbase will.
<p><span>Superintendent of Financial Services Adrienne A. Harris announced today that Coinbase, Inc. (“Coinbase”) will pay a $50 million penalty to New York State for significant failures in its compliance program that 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. These failures made the Coinbase platform vulnerable to serious criminal conduct, including, among other things, examples of fraud, possible money laundering, suspected child sexual abuse material-related activity, and potential narcotics trafficking. In addition to the penalty, Coinbase has agreed to invest an additional $50 million in its compliance function over the next two years to remediate the issues and to enhance its compliance program pursuant to a plan approved by DFS. </span></p>