The New York State Department of Financial Services (DFS) has fined Robinhood Crypto $30 million for “significant failures in the areas of bank secrecy act/anti-money laundering (‘BSA/AML’) obligations and cybersecurity.”
Robinhood Crypto Settles With the DFS
The New York State Department of Financial Services (DFS) introduced Tuesday that Robinhood Crypto LLC (RHC) can pay a $30 million penalty to New York State for “significant failures in the areas of bank secrecy act/anti-money laundering (‘BSA/AML’) obligations and cybersecurity.”
The failures resulted in violations of the division’s Virtual Currency Regulation, Money Transmitter Regulation, Transaction Monitoring Regulation, and Cybersecurity Regulation, the DFS detailed.
Superintendent of Financial Services Adrienne A. Harris commented:
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 vital violations of the Department’s anti-money laundering and cybersecurity rules.
“All of these deficiencies resulted from what the Department found were significant shortcomings in the management and oversight of RHC’s compliance programs, including a failure to foster and maintain an adequate culture of compliance,” the announcement continues.
Besides the $30 million penalty, Robinhood Crypto can be required to retain an unbiased advisor that can carry out a complete analysis of its compliance with the DFS rules.
The New York State regulator accredited Robinhood Crypto’s functions for a digital forex license and a cash transmission license in January 2019, stating on the time:
DFS has licensed Robinhood Crypto to supply companies for shopping for, promoting, and storing seven digital currencies, together with bitcoin, ether, bitcoin money, and litecoin.
Robinhood presents commission-free crypto investing. The platform presently helps the shopping for, promoting, and real-time market knowledge for bitcoin (BTC), bitcoin money (BCH), bitcoin sv (BSV), chainlink (LINK), compound (COMP), dogecoin (DOGE), ethereum (ETH), ethereum basic (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? Let us know in the feedback part under.
Image Credits: Shutterstock, Pixabay, Wiki Commons, lev radin
Disclaimer: This article is for informational functions solely. It isn’t a direct supply or solicitation of a proposal to purchase or promote, or a suggestion or endorsement of any merchandise, companies, or corporations. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the creator is accountable, straight or not directly, for any injury or loss brought on or alleged to be brought on by or in reference to the usage of or reliance on any content material, items or companies talked about in this text.