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 cardinal for “significant failures successful the areas of slope 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) announced Tuesday that Robinhood Crypto LLC (RHC) volition wage a $30 cardinal punishment to New York State for “significant failures successful the areas of slope secrecy act/anti-money laundering (‘BSA/AML’) obligations and cybersecurity.”

The failures resulted successful violations of the department’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 concern grew, Robinhood Crypto failed to put the due resources and attraction to make and support a civilization of compliance — a nonaccomplishment that resulted successful important violations of the Department’s anti-money laundering and cybersecurity regulations.

“All of these deficiencies resulted from what the Department recovered were important shortcomings successful the absorption and oversight of RHC’s compliance programs, including a nonaccomplishment to foster and support an capable civilization of compliance,” the announcement continues.

Besides the $30 cardinal penalty, Robinhood Crypto volition beryllium required to clasp an autarkic advisor that volition execute a broad valuation of its compliance with the DFS regulations.

The New York State regulator approved Robinhood Crypto’s applications for a virtual currency licence and a wealth transmission licence successful January 2019, stating astatine the time:

DFS has authorized Robinhood Crypto to connection services for buying, selling, and storing 7 virtual currencies, including bitcoin, ether, bitcoin cash, and litecoin.

Robinhood offers commission-free crypto investing. The level presently supports the buying, selling, and real-time marketplace information for bitcoin (BTC), bitcoin currency (BCH), bitcoin sv (BSV), chainlink (LINK), compound (COMP), dogecoin (DOGE), ethereum (ETH), ethereum classical (ETC), litecoin (LTC), polygon (MATIC), shiba inu (SHIB), solana (SOL), and uniswap (UNI).

What bash you deliberation astir the DFS taking enactment against Robinhood Crypto? Let america cognize successful the comments conception below.