Coinbase stock soars 11% amid $100 million settlement with NY regulator
Coinbase (NASDAQ: COIN) shares spiked more than 11.6% on Wednesday and were trading around $37.50 at 11:30 am ET.
COIN’s gains followed the latest crypto-related news for the leading US-based cryptocurrency exchange, with the gains also happening as stocks looked to stage an upside move amid multiple sets of economic news.
On Wednesday, the US job openings came in higher-than-expected, while manufacturing activity contracted. Investors were also eyeing sentiment from central bankers as outlined in the December policy meeting.
COIN stock rallies as Coinbase agrees NYDFS penalty
On 4 January, the New York Department of Financial Services (NYDFS) announced it had fined Coinbase over its failure to adhere to regulatory compliance requirements.
In particular, NYDFS said the cryptocurrency exchange had reached settlement for violations that included the lack of proper review of customer details during registration. The exchange did not also have an “effective transaction monitoring program”, and violated Anti-Money Laundering laws.
As such, Coinbase will pay a total of $100 million in penalties – $50 million being a civil monetary penalty and another $50 million to be spent on a compliance program.
The Coinbase stock made its market debut in April 2021 following a direct listing, trading as high as $357 in November. However, with the crypto market in free fall since, the exchange’s stock has declined more than 89%. COIN is down nearly 20% in the past one month.
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