The New York State Department of Financial Services (DFS) has fined Robinhood Crypto $30 million for “significant violations in the areas of Bank Secrecy Law/Anti-Money Laundering Obligations”. money (‘BSA/AML’) and cybersecurity”.
Robinhood Crypto installs with DFS
The New York State Department of Financial Services (DFS) announced on Tuesday that Robinhood Crypto LLC (RHC) will pay a $30 million fine to New York State for “material failures in areas of law on banking secrecy/anti-money laundering (‘BSA/ AML obligations’) and cybersecurity.
The failures resulted in violations of the department’s virtual currency regulations, money transmitter regulations, transaction monitoring regulations and cybersecurity regulations, DFS detailed.
Superintendent of Financial Services Adrienne A. Harris said:
As its business grew, Robinhood Crypto failed to invest the appropriate resources and attention to develop and maintain a culture of compliance – a failure that resulted in significant violations of the Department’s compliance regulations. fight against money laundering and cybersecurity.
“All of these shortcomings were the result of what the department found to be significant shortcomings in the management and oversight of HRC’s compliance programs, including the failure to foster and maintain an adequate compliance culture,” the announcement continues. .
In addition to the $30 million fine, Robinhood Crypto will have to hire an independent consultant to conduct a full 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 transfer license in January 2019, stating at the time:
DFS has licensed Robinhood Crypto to offer services for buying, selling, and storing seven virtual currencies, including bitcoin, ether, bitcoin cash, and litecoin.
Robinhood offers commission-free crypto investments. The platform currently supports real-time buy, sell, and market data for bitcoin (BTC), bitcoin cash (BCH), bitcoin sv (BSV), chainlink (LINK), compound (COMP), dogecoin (DOGE), ethereum (ETH), classic ethereum (ETC), Litecoin (SLD), polygon (MATIC), shiba inu (SHIB), solana (SOL) and uniswap (UNI).
What do you think of the DFS action against Robinhood Crypto? Let us know in the comments section below.
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