Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
Robinhood Crypto Fined $30M by New York Regulator for ‘Significant Failures’ in Multiple Areas – Regulation Bitcoin News
The New York State Department of Financial Services (DFS) has fined Robinhood Crypto $30 million for “significant failures in the areas of bank secrecy/anti-money laundering (‘BSA/AML’) obligations and cyber security.”
Robinhood Crypto settles with DFS
The New York State Department of Financial Services (DFS) announced Tuesday that Robinhood Crypto LLC (RHC) will pay a $30 million penalty to New York State for “significant failures in the areas of Bank Secrecy Act/Anti-Money Laundering (‘BSA/AML’ ) obligations and cyber security.”
The errors resulted in breaches of the department’s Virtual Currency Regulation, Money Transmitter Regulation, Transaction Monitoring Regulation and Cybersecurity Regulation, DFS detailed.
Superintendent of Financial Services Adrienne A. Harris commented:
As the business grew, Robinhood Crypto failed to invest the necessary 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 resulted from what the department found were significant deficiencies in the management and oversight of RHC’s compliance programs, including the failure to promote and maintain an adequate culture of compliance,” the announcement continues.
In addition to the $30 million penalty, Robinhood Crypto will be required to retain an independent consultant who will conduct a comprehensive evaluation of compliance with the DFS regulations.
The New York State regulator approved Robinhood Crypto’s applications for a virtual currency license and a remittance license in January 2019, saying at the time:
DFS has authorized Robinhood Crypto to provide 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), chainlink (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.
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