CoinList Settles with US Authorities Over Violations in Crimea Transactions
CoinList, a virtual currency exchange based in California, has reached a settlement with the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) regarding potential violations related to transactions processed for users in Crimea. The exchange has agreed to pay $1,207,830 to settle its potential civil liability.
Violations Occurred Between April 2020 and May 2022
The apparent violations occurred between April 2020 and May 2022. CoinList allegedly processed 989 transactions for users claiming residence in Crimea, which is a violation of OFAC’s Russia/Ukraine sanctions. Despite having compliance measures in place, CoinList failed to identify users misrepresenting their residence and providing addresses in Crimea.
Settlement Amount Takes into Account Various Factors
The settlement amount of $1,207,830 considers factors such as the non-egregious nature of the violations. The maximum penalty could have been significantly higher at $327,306,583, but the OFAC took into account aggravating factors like CoinList’s failure to exercise due caution in sanctions compliance. Mitigating factors included the exchange’s cooperation with the investigation and implementation of remedial measures.
CoinList Commits to Enhanced Sanctions Compliance Controls
As part of the settlement, CoinList agreed to suspend $300,000 of the settlement amount to ensure compliance. The exchange also committed to investing $300,000 in enhanced sanctions compliance controls. These measures aim to prevent future violations and strengthen CoinList’s screening protocols and compliance staff.
Hot Take: CoinList Resolves Regulatory Concerns and Implements Remedial Measures
CoinList’s settlement with the US authorities regarding violations in Crimea transactions highlights the importance of robust compliance measures in the crypto industry. While the exchange faced penalties for its oversight, it has taken significant steps to rectify the situation and prevent future violations. By suspending a portion of the settlement amount and investing in enhanced sanctions compliance controls, CoinList demonstrates its commitment to regulatory compliance. This case serves as a reminder to all crypto exchanges to diligently screen users and transactions to avoid potential sanctions violations.
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