Robinhood Crypto Fined $30 Million by New York Regulator for ‘Critical Failures’ in Multiple Areas – Regulation Bitcoin News
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) reported Tuesday that Robinhood Crypto LLC (RHC) will suffer a $30 million consequence to New York State for “significant failures in the areas of bank secrecy act/anti-money laundering (‘BSA/AML’) obligations and cybersecurity.”
The disappointments brought about infringement 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 business developed, Robinhood Crypto neglected to contribute the legitimate assets and thoughtfulness regarding create and keep a culture of consistence — a disappointment that brought about huge infringement of the Department’s enemy of tax evasion and network protection regulations.
“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 declaration continues.
Besides the $30 million punishment, Robinhood Crypto will be expected to hold an autonomous expert that will play out an extensive assessment of its consistence with the DFS regulations.
The New York State controller supported Robinhood Crypto’s applications for a virtual money permit and a cash transmission permit in January 2019, expressing at the time:
DFS brings approved Robinhood Crypto to the table for administrations for purchasing, selling, and putting away seven virtual monetary standards, including bitcoin, ether, bitcoin money, and litecoin.
Robinhood offers sans commission crypto contributing. The stage right now upholds the purchasing, selling, and continuous market information for bitcoin (BTC), bitcoin cash (BCH), bitcoin sv (BSV), chainlink (LINK), compound (COMP), dogecoin (DOGE), ethereum (ETH), ethereum exemplary (ETC), litecoin (LTC), polygon (MATIC), shiba inu (SHIB), solana (SOL), and uniswap (UNI).
What do you ponder the DFS making a move against Robinhood Crypto? Tell us in the remarks area below.
Kevin Helms
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