Through a letter addressed to Coinbase CEO Brian Armstrong, FinCEN highlighted the digital currency exchange’s role in aiding law enforcement efforts via its compliance and reporting practices. The recognition comes amid the backdrop of an SEC lawsuit against the exchange over alleged securities violations.

The acknowledgment forms part of the annual FinCEN Director’s Law Enforcement Awards Program, which celebrates substantial criminal cases that have utilized Bank Secrecy Act (BSA) reporting as a foundation for successful investigations and prosecutions.

This year, Coinbase’s involvement stood out in one of the seven notable cases recognized by the program, marking a significant acknowledgment for the crypto sector in the fight against financial crimes.

Coinbase Chief Legal Officer Paul Grewal shared the news and expressed appreciation for the recognition over social media, emphasizing the company’s commitment to removing bad actors from the financial ecosystem.

Grewal praised the company’s compliance and government investigations teams for their excellence in maintaining a lawful environment despite facing criticism.

The FinCEN letter stressed the critical role of BSA reporting in meeting regulatory requirements and supporting the integrity of the US financial system. It detailed how law enforcement, counter-terrorism agencies, and financial regulators rely on the financial intelligence generated from these reports to combat crimes ranging from elder fraud to terrorism.

Additionally, the letter illuminated the impact of BSA reports beyond assisting investigations. These reports fuel FinCEN’s analytical work, enabling the identification of new illicit finance trends and the development of preventive measures. The bureau also uses these reports to inform the regulated community through information-sharing initiatives and publications.

By highlighting Coinbase’s contributions, FinCEN aims to illustrate the importance of efforts to uphold financial integrity across all levels of the organization. The letter intends to remind everyone involved in anti-money laundering activities of their significant daily impact on national security and the protection of individuals from financial crimes.

The recognition from FinCEN not only honors Coinbase’s work but also emphasizes the importance of collaboration between the fintech industry and regulatory agencies in ensuring the safety and security of the financial system.