The New York State Division of Monetary Providers (DFS) has fined Robinhood Crypto $30 million for “vital failures within the areas of financial institution secrecy regulation/anti-money laundering (‘BSA/AML’) obligations.” and cybersecurity”.
Robinhood Crypto is established with the DFS
The New York State Division of Monetary Providers (DFS) introduced Tuesday that Robinhood Crypto LLC (RHC) can pay a $30 million effective to the State of New York for “vital failures within the areas of financial institution secrecy regulation/counterfeiting.” cash laundering (‘BSA/AML Obligations’) and cybersecurity.”
The failures resulted in violations of the division’s Digital Foreign money Regulation, Cash Transmitters Regulation, Transaction Monitoring Regulation and Cybersecurity Regulation, the DFS mentioned.
Superintendent of Monetary Providers Adrienne A. Harris commented:
As its enterprise grew, Robinhood Crypto failed to speculate satisfactory assets and a focus to develop and preserve a tradition of compliance, a failure that resulted in vital violations of the Division’s anti-money laundering and cybersecurity laws.
“All of those deficiencies have been resulting from what the Division discovered to be vital deficiencies within the administration and oversight of RHC’s compliance packages, together with a failure to foster and preserve an acceptable tradition of compliance,” the announcement continues.
Along with the $30 million effective, Robinhood Crypto might be required to retain an impartial marketing consultant who will conduct a complete evaluation of its compliance with DFS laws.
The New York State regulator authorized 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 providers to purchase, promote, and retailer seven digital currencies, together with bitcoin, ether, bitcoin money, and litecoin.
Robinhood provides crypto funding with no charges. The platform at present helps purchase, promote and real-time market knowledge 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).
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