The New York State Department of Financial Services is requiring Coinbase to pay a $50 million dollar fine for allowing new users to open accounts on the popular centralized crypto exchange under a lax KYC policy that regulators say violates anti-money laundering laws. 

Additionally, the exchange will also have to pay another $50 million over the next two years to boost up their compliance measures in order to reduce the number of criminals that are able to use the exchange in order to profit from crimes such as drug dealing and illegal pornography. 

The news has caused a small price surge for $COIN, the company’s public stock which has been in a freefall since the bear market began with it dropping from over $300 per share to just under $40 per share.