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

Robinhood Crypto Fined $30 Million by NY Regulator for 'Significant Failures' in Several Areas

The New York State Department of Financial Services (DFS) has fined Robinhood Crypto $30 million for “vital failures in the areas of financial institution 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) pays a $30 million penalty to New York State for “vital failures in the areas of financial institution 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 correct assets and a focus to develop and keep a tradition of compliance — a failure that resulted in vital violations of the Department’s anti-money laundering and cybersecurity rules.

“All of those deficiencies resulted from what the Department discovered had been vital shortcomings in the administration and oversight of RHC’s compliance applications, together with a failure to foster and keep an sufficient tradition of compliance,” the announcement continues.

Besides the $30 million penalty, Robinhood Crypto will likely be required to retain an unbiased guide that can carry out a complete analysis of its compliance with the DFS rules.

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

DFS has licensed Robinhood Crypto to supply providers for shopping for, promoting, and storing seven digital currencies, together with bitcoin, ether, bitcoin money, and litecoin.

Robinhood provides commission-free crypto investing. The platform at present helps the shopping for, promoting, and real-time market information 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 consider the DFS taking motion in opposition to Robinhood Crypto? Let us know in the feedback part under.

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.

Image Credits: Shutterstock, Pixabay, Wiki Commons, lev radin

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