123 - The REAL Reason Why Coinbase Was Fined

<p><span style="font-weight: 400;">The New York State Department of Financial Services recently fined Coinbase, and since then, there have been harsh (and in my opinion, false) accusations made against the company. In this episode, I share my thoughts on why Coinbase ended up in this position and what they could have done to avoid it! </span></p> <p><span style="font-weight: 400;">If you found value in this episode, I would really appreciate if you could leave a review! My mission is to help and support as many FinTech startups as possible, and when you leave a positive review, more people can find this podcast and help their companies!</span> <span style= "font-weight: 400;">If you are on Apple, just </span><a href= "https://podcasts.apple.com/ch/podcast/compliance-that-makes-sense/id1535160531"><strong>click here to review</strong></a><span style="font-weight: 400;">, select “Ratings and Reviews” and “Write a Review” and tell me what your favorite part of the podcast is. </span></p> <p> </p> <p><strong>Today's episode:</strong></p> <p><span style="font-weight: 400;">[00:50] Some of the most popular explanations given for the fine that Coinbase received.  </span></p> <p><span style="font-weight: 400;">[01:21] The settlement order that Coinbase was issued by the</span> <span style= "font-weight: 400;">New York State Department of Financial Services.</span></p> <p><span style="font-weight: 400;">[03:08] My thoughts on the root cause of the issues that led Coinbase to be fined. </span></p> <p><span style="font-weight: 400;">[04:34] The four areas where Coinbase reportedly had deficiencies. </span></p> <p><span style="font-weight: 400;">[08:42] The outcome of the Coinbase audit conducted in 2020 and why they agreed to pay the fine. </span></p> <p><span style="font-weight: 400;">[10:59] Examples from the settlement order that highlight why the harsh accusations made against Coinbase are inaccurate. </span></p> <p><span style="font-weight: 400;">[13:46] The finding in the settlement order that was most surprising to m