BitPay Fined by US Authorities

Authorities in the United States have sanctioned BitPay for providing its crypto services to unauthorized regions of the world. According to the announcement, the crypto company has agreed to pay a fine of over $500 thousand dollars to the coffers of the government.

The Georgia-based company was accused of allowing people in places like “the Crimea region of Ukraine, Cuba, North Korea, Iran, Sudan, and Syria to transact with merchants in the United States and elsewhere using digital currency on BitPay’s platform.” The authorities also stated that the crypto company knew about this and still went ahead to process the transactions for such individuals knowing fully well that it was a violation of its regulations.

The U.S. Treasury’s Office of Foreign Asset Control (OFAc) also went on to state that BitPay had facilitated over 2000 transactions worth almost $129,000 for these individuals between 2013 and 2018. The agency also highlighted the need for crypto firms to whip themselves into line saying that “this action emphasizes that OFAC obligations apply to all U.S. persons, including those involved in providing digital currency services.”

A similar fine was meted on BitGo towards the end of last year. The authorities had accused the company of violating its regulations and this led to a sanction of around $100,000.

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