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

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

The state’s Department of Financial Services (DFS) fined Robinhood Crypto $30 million for “significant failures in the areas of Bank Secrecy/Anti-Money Laundering Act (‘BSA/AML’) and cybersecurity obligations.”

Robinhood Crypto is settled with DFS

The state Department of Financial Services (DFS) announced Tuesday that Robinhood Crypto LLC (RHC) will pay a $30 million fine to the state of New York for “significant failures in the areas of the Bank Secrecy/Anti-Money Laundering Act (‘BSA/AML’) obligations and cyber security.”

The failures resulted in violations of the Virtual Currency Regulation, the Money Transfer Regulation, the Transaction Monitoring Regulation and the Cyber ​​Security Regulation, the DFS detailed.

Superintendent of Financial Services Adrienne A. Harris commented:

As its business grew, Robinhood Crypto failed to invest adequate resources and attention to develop and maintain a culture of compliance—a failure that resulted in significant violations of the Department’s anti-money laundering and cybersecurity regulations.

“All of these deficiencies are the result of what the Department found to be significant deficiencies in the management and oversight of RHC’s compliance program, including a failure to foster and maintain an adequate culture of compliance,” the statement continued.

In addition to the $30 million fine, Robinhood Crypto will be required to hire an independent consultant to conduct a comprehensive assessment of its compliance with DFS regulations.

The New York state regulator approved Robinhood Crypto’s applications for a virtual currency license and a money transmitter license in January 2019, stating at the time:

Robinhood Crypto has been authorized by DFS to offer services for the purchase, sale and storage of seven virtual currencies, including bitcoin, ether, bitcoin cash and litecoin.

Robinhood offers commission-free crypto investing. The platform currently supports buying, selling and real-time market data for bitcoin (BTC), bitcoin cash (BCH), bitcoin sv (BSV), chain (LINK), compound (COMP), dogecoin (DOGE), ethereum (ETH), ethereum classic (ETC), Litecoin (LTC), Polygon (MATIC), Shiba Inu (SHIB), Solana (SOL) and Uniswap (UNI).

What do you think about DFS taking action against Robinhood Crypto? Let us know in the comments section below.

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

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.

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

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); = id;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));

Source link

Leave a Reply