👋 Welcome to the October CryptoCubed edition. This month’s crypto news is jam-packed with enforcement action and new regulatory developments, including the Coinbase €3.25M fine, South Korea’s crypto hunt, and the UK’s authorization gateway deadline.
Here are all the details and compliance lessons you need to know!
Central Bank of Ireland Fines Coinbase €3.25M
Ireland, October 22, 2026 🇮🇪: The Central Bank of Ireland announced a €3,252,618 ($3.65M) penalty against Coinbase following violations of customer-fund safeguarding and outsourcing rules under the Electronic Money Regulations 2011 (EMR 2011). These violations occurred from 2020 to 2025.
This penalty marks the Central Bank’s 164th enforcement outcome, totaling over €432 million in fines. Karen O’Leary, the Central Bank Director of Enforcement, notes, “While outsourcing presents many benefits to industry, when not effectively managed, it can threaten the operational resilience of firms.”
Firms in Ireland must have the appropriate culture and expertise to comply with rules, respond to risks, and protect customer interests.
Under the EMR 2011, crypto businesses must meet several compliance and governance requirements to protect the financial system. Coinbase Ireland failed to meet multiple of these, including:
- Insufficient local team expertise to manage and oversee customer funds.
- Inability to fully meet Irish/EU compliance mandates due to excessive reliance on its US unit as an outsourced provider.
- Did not have strong governance processes to identify and escalate material changes that can impact Ireland’s financial ecosystem.
- Failed to protect customer funds due to ineffective system design and deficient control testing mechanisms.
Considerazioni importanti in materia di conformità:
For global crypto asset providers, this enforcement story offers a critical lesson. It highlights the gap that can emerge when firms heavily outsource critical safeguarding and compliance functions. Crypto firms that rely on third-party providers should maintain strong governance, controls, and direct regulatory accountability on an ongoing, end-to-end basis.
Per saperne di più su questa storia, clicca Qui.
South Korea Restricts 27 Crypto Websites
South Korea, October 13, 2026 🇰🇷: South Korea’s Financial Intelligence Unit (FIU) has issued an order to block 27 unregistered crypto exchange websites from domestic access in the country. The 27 exchanges include leading global crypto providers such as KuCoin, MEXC, BitMart, and WEEX.
Crypto service providers can face up to five years in prison or a fine of over 50 million won if they operate without FIU registration.
The Korea Communications Standards Commission has approved these restrictions. Just last year, the FIU ordered Google and Apple to block users from installing or updating unregistered crypto apps. As a result, South Korean consumers have lost another viable route to access these services.
As of 2026, only 28 virtual asset service providers have registration to operate in the country. The FIU has also sent 44 unregistered operators to investigators for further blocking and monitoring to ensure they don’t try to relaunch under new addresses.
Considerazioni importanti in materia di conformità:
South Korea has been relentless in punishing non-compliant crypto providers. This year alone, big-name exchanges such as Coinone e Dunamu faced hefty enforcement action. Thus, to serve domestic customers, offshore crypto firms must meet KoFIU licensing, compliance, and security rules. This includes information security certification and strong suspicious transaction reporting controls.
Per saperne di più su questa storia, clicca Qui.
Chinese National Extradited Over $36.9M Scam
United States, October 23, 2026 🇺🇸: Zheng Zhao, the notorious fraudster who scammed victims out of over $36.9 million, has been extradited to the US. So far, 174 US victims have been identified. Court documents revealed that Zhao was part of a larger crypto criminal network, operated in Cambodia.
If convicted, Zhao can face up to 20 painful years behind prison walls.
According to reports, Zhao and his co-conspirators reached out to US victims through social media, dating apps, and calls/messages to build trust. They then convinced victims to send funds through fake crypto trading platforms, which they laundered through multiple shell companies and bank accounts to avoid detection. So far, investigators have identified eight co-conspirators.
Considerazioni importanti in materia di conformità:
Scammers are exploiting complex intermediaries with weak Antiriciclaggio (AML) controls to funnel dirty money. For legitimate crypto firms, this can be harmful. Crypto firms must strengthen due diligence measures, ongoing monitoring, and Know Your Business (KYB) verification. These controls help firms detect suspicious users and transactions before they move through the business.
Per saperne di più su questa storia, clicca Qui.
UK’s Latest FCA Crypto Authorization Gateway
United Kingdom, October 1, 2026 🇬🇧: The Financial Conduct Authority (FCA) has officially opened its cryptoasset authorization gateway, marking a major step towards bringing regulated crypto activities under its full supervisory framework.
Crypto firms continuing UK operations must apply for authorization by 28 February 2027, before the regime launches on 25 October 2027.
This is part of the UK’s plan to bring all AML and Counter-Terrorist Financing (CTF) supervision under one harmonized supervisory body. Similarly, in 2025, the FCA announced its plans to take over AML supervision for UK law firms, moving away from the Solicitors Regulation Authority (SRA).
Considerazioni importanti in materia di conformità:
For crypto businesses, the FCA Crypto Gateway will signal a major shift in how they meet compliance requirements. The FCA sets stringent rules around consumer protection, safeguarding, market integrity and financial resilience. To continue UK operations, cryptoasset firms must prepare early. They must demonstrate robust AML controls meeting FCA regulatory expectations.
Per saperne di più su questa storia, clicca Qui.
AMLA Finalizes Identity Verification Standards for Private EU Firms
European Union, October 1, 2026 🇪🇺: The EU’s Anti-Money Laundering Authority (AMLA) has confirmed three Regulatory Technical Standards (RTS) that will harmonize AML and Counter-Terrorism Financing (CTF) rules across the bloc.
These three standards aim to enhance risk-based financial crime detection and prevention. They cover CDD, group-wide arrangements, and business relationships under Regulation (EU) 2024/1624:
- Due Diligence del Cliente (CDD): Sets guidelines for collecting identity data, such as full names and nationalities, according to the level of risk present. It also offers other verification methods that meet the required reliability standards for remote onboarding.
- Group-wide arrangements: Covers internal controls, governance, and information sharing requirements for businesses, including those that have subsidiaries or branches outside the EU. This is especially important for multinational crypto exchanges.
- Business relationships and occasional transactions: Determines the right CDD trigger by providing clearer guidelines to distinguish between an ongoing business relationship versus an occasional transaction. The former requires more heightened monitoring and verification.
Considerazioni importanti in materia di conformità:
EU businesses should closely monitor the RTS, as it may undergo further updates and amendments before final publication in the Official Journal of the EU. For EU businesses, the final drafts show that the AMLA is moving away from broad AML frameworks toward more specific, testable compliance requirements around identity data collection, sharing, and verification.
Per saperne di più su questa storia, clicca Qui.
Insight: How to Implement Compliant Risk Assessments?
In 2025, crypto money laundering totaled $82 billion. When used to fund other illicit activities, such as drug trafficking, the consequences can be fatal. As a result, global regulators are setting more rigorous risk-assessment obligations for crypto companies.
Crypto AML rules, including the Travel Rule and recent FCA Crypto Gateway marks rising expectations for effective, proportionate risk management and assessment. ComplyCube’s recent KYC risk assessment guide explores the critical AML risk to crypto firms and offers practical insights around implementing and maintaining strong risk assessments.
To learn more, click Qui.
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🔥LA POESIA CRYPTO CUBED: OTTOBRE🔥
Across the globe, regulatory rules grow tight,
As crypto firms face sharper oversight.
From Ireland’s fines to South Korea’s ban,
Regulators roll out a stricter compliance plan.
The UK sets its crypto gateway wide,
While Europe puts trust and checks beside.
As fraudsters fall and standards rise,
Strong compliance becomes the ultimate prize.
Stay tuned for our November newsletter, and have a great month!
