CoinList Settles OFAC Allegations for $1.2 Million Fine over Crimea Users!

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Author: Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

CoinList has agreed to pay a $1.2 million fine to settle allegations from the U.S. Office of Foreign Assets Control (OFAC) that it allowed users in the Russian-occupied region of Crimea to use its platform. OFAC accused CoinList of opening 89 accounts for customers who provided addresses in Crimea, despite specifying Russia as their country of residence. The exchange’s screening protocols failed to recognize that ‘Crimea’ or a city name in Crimea indicated likely residence in the region. OFAC noted that the fine was significantly lower than the potential maximum due to CoinList’s past compliance and cooperation and the small number of transactions involved relative to the exchange’s total volume. CoinList said it would invest $300,000 into compliance controls as a result of the settlement. The exchange, which is relatively small with just $400,000 in daily volume, closed a $100 million funding round in October 2021, valuing the company at $1.5 billion.

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