Robinhood Crypto Fined $30 Million by New York Regulator for ‘Significant Failures’ in Multiple Areas


Robinhood Crypto Fined $30 Million By New York Regulator For 'Significant Failures' In Multiple Areas

The New York State Division of Monetary Companies (DFS) has fined Robinhood Crypto $30 million for “important within the areas of financial institution secrecy act/anti-money laundering (‘BSA/AML’) obligations and cybersecurity.”

Robinhood Crypto Fined $30 Million By New York Regulator For 'Significant Failures' In Multiple Areas

Robinhood Crypto Settles With the DFS

The New York State Division of Monetary Companies (DFS) introduced Tuesday that Robinhood Crypto LLC (RHC) pays a $30 million penalty to New York State for “important within the areas of financial institution secrecy act/anti-money laundering (‘BSA/AML’) obligations and cybersecurity.”

Robinhood Crypto Fined $30 Million By New York Regulator For 'Significant Failures' In Multiple Areas

The failures resulted in violations of the division’s Digital Foreign money Regulation, Cash Transmitter Regulation, Transaction Monitoring Regulation, and Cybersecurity Regulation, the DFS detailed.

Robinhood Crypto Fined $30 Million By New York Regulator For 'Significant Failures' In Multiple Areas

Superintendent of Monetary Companies Adrienne A. Harris commented:

Robinhood Crypto Fined $30 Million By New York Regulator For 'Significant Failures' In Multiple Areas

As its enterprise grew, Robinhood Crypto failed to take a position the right assets and a spotlight to develop and preserve a tradition of compliance — a failure that resulted in important violations of the Division’s anti-money laundering and cybersecurity laws.

Robinhood Crypto Fined $30 Million By New York Regulator For 'Significant Failures' In Multiple Areas

“All of those deficiencies resulted from what the Division discovered had been important shortcomings within the administration and oversight of RHC’s compliance packages, together with a failure to foster and preserve an sufficient tradition of compliance,” the announcement continues.

Robinhood Crypto Fined $30 Million By New York Regulator For 'Significant Failures' In Multiple Areas

Moreover the $30 million penalty, Robinhood Crypto shall be required to retain an unbiased advisor that may carry out a complete of its compliance with the DFS laws.

The New York State regulator authorised Robinhood Crypto’s purposes for a digital foreign money license and a cash transmission license in January 2019, stating on the time:

DFS has approved Robinhood Crypto to supply companies for getting, , and storing seven digital currencies, together with bitcoin, ether, bitcoin money, and litecoin.

Robinhood gives commission-free crypto investing. The platform presently helps the shopping for, , and real-time market information for bitcoin (BTC), bitcoin money (BCH), bitcoin sv (BSV), chainlink (LINK), compound (COMP), dogecoin (DOGE), ethereum (ETH), ethereum traditional (ETC), litecoin (LTC), polygon (MATIC), shiba inu (SHIB), solana (SOL), and uniswap (UNI).

What do you concentrate on the DFS taking motion in opposition to Robinhood Crypto? Tell us within the feedback part beneath.

Kevin Helms

A pupil of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source techniques, community results and the intersection between economics and cryptography.

Picture Credit: Shutterstock, Pixabay, Wiki Commons, lev radin

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