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

The New York State Department of Financial Services (DFS) has fined Robinhood Crypto $30 million for “important failures within 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) can pay a $30 million penalty to New York State for “important failures within 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 speculate the correct sources and a focus to develop and preserve a tradition of compliance — a failure that resulted in important violations of the Department’s anti-money laundering and cybersecurity laws.

“All of those deficiencies resulted from what the Department discovered had been important shortcomings within the administration and oversight of RHC’s compliance packages, together with a failure to foster and preserve an satisfactory tradition of compliance,” the announcement continues.

Besides the $30 million penalty, Robinhood Crypto will likely be required to retain an impartial marketing consultant that may carry out a complete analysis of its compliance with the DFS laws.

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 getting, promoting, and storing seven digital currencies, together with bitcoin, ether, bitcoin money, and litecoin.

Robinhood affords commission-free crypto investing. The platform at the moment 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).

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