Crypto exchange CoinList agreed to pay $1.2 million to settle allegations from the U.S. Office of Foreign Assets Control (OFAC). The accusations were related to CoinList allowing users from Crimea, a region in Ukraine annexed by Russia, to use their platform.
According to OFAC, CoinList opened 89 accounts for customers who identified their country of residence as ‘Russia.’ However, all of these users provided addresses in Crimea when creating their accounts.
The screening protocols in place failed to recognize that mentioning ‘Crimea’ or a city within Crimea indicated likely residency in that region.
The OFAC mentioned that the fine imposed on CoinList was much less than the possible maximum of almost $327 million because of CoinList’s past compliance and cooperation.
OFAC said in a blog post, “This enforcement action further emphasizes the importance for virtual currency companies and those involved in emerging technologies to incorporate risk-based sanctions compliance into their business functions, especially when the companies seek to offer financial services to a global customer base.”
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