According to the Wall Street Journal, coinbase, the cryptocurrency exchange, said its services could be used by individuals, entities or jurisdictions that have been blacklisted in the United States.
Coinbase said in a regulatory document that the office of foreign assets control (OFAC) of the U.S. Treasury Department is reviewing the transaction information it disclosed.
Coinbase filed its listing application with the securities and Exchange Commission on Thursday.
In a prospectus submitted to the securities and Exchange Commission last week, the company said it had not faced fines or other enforcement actions related to disclosure or subpoena, but some of its disclosures were still under review by OFAC.
U.S. regulations prohibit transactions with blacklisted individuals or companies and with governments or jurisdictions subject to comprehensive U.S. sanctions.
The company said the nature of blockchain technology and coinbase services makes it technically impossible to prevent transactions with certain individuals, companies or addresses.
"We have shared with OFAC the key details of our compliance plan and we believe we have developed a reasonable risk plan," 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 blacklisted by OFAC or deemed by the company to be associated with individuals, companies or jurisdictions on the blacklist, according to the document.
Coinbase has about 43 million users and is accessible in more than 100 countries.Coinbase said in its prospectus that it was implementing additional control and screening tools.The company appointed a new head of compliance last month.