The U.S. Treasury Department’s Office of Foreign Assets Control is reviewing Coinbase’s disclosures

Cryptocurrency exchange Coinbase said its services may be used by individuals, entities or jurisdictions that have been blacklisted by the United States for sanctions, The Wall Street Journal reported.

Coinbase said in a regulatory filing that the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) is reviewing its disclosed transaction information.

As previously reported by Bitpush, Coinbase submitted an application for listing to the U.S. Securities and Exchange Commission (SEC) last Thursday.

The company said in its prospectus filed last week with the U.S. Securities and Exchange Commission that it has not faced fines or other enforcement actions related to disclosures or subpoenas, but some of its disclosures are still under review by OFAC.

U.S. regulations prohibit transactions with blacklisted individuals or companies, as well as governments or jurisdictions that are subject to comprehensive U.S. sanctions.

The company said the nature of blockchain technology and Coinbase’s services make it technically impossible to prevent transactions with certain individuals, companies or addresses.

“We have shared key details of our compliance program with OFAC, and we believe we have a reasonable risk program in place,” the company said in its prospectus.

The company’s compliance program includes monitoring internet protocol addresses to identify jurisdictions subject to U.S. sanctions, as well as blockchain addresses that have been blacklisted by OFAC or that the company believes are associated with blacklisted individuals, companies or jurisdictions, the document said.

Coinbase, which has about 43 million users and is accessible in more than 100 countries, said in its prospectus that it is implementing additional controls and screening tools. The company named a new compliance chief last month.

Image source: Coinbase

byAmy Liu

This article comes from Bitpush.News. Reprinting must indicate the source.