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Top Cryptocurrency News: Robinhood Crypto Fined $30M by New York Regulator for ‘Significant Failures’ in Multiple Areas

03-Aug-2022 By: Sudeep Saxena
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Robinhood Crypto was fined $30 million by the New York State Department of Financial Services (DFS) for considerable failures in the areas of bank secrecy act/anti-money laundering ('BSA/AML') obligations and cybersecurity.

According to a report released on Tuesday by the New York State Department of Financial Services (DFS), Robinhood Crypto LLC (RHC) will forfeit $30 million as compensation for serious violations of its cybersecurity and BSA/AML obligations.

According to the DFS, the failures led to violations of the department's Virtual Currency Regulation, Money Transmitter Regulation, Transaction Monitoring Regulation, and Cybersecurity Regulation.

Adrienne A. Harris, Superintendent of Financial Services, stated that “as its business grew, Robinhood Crypto failed to invest the required resources and attention in developing and maintaining a culture of compliance, resulting in significant breaches of the Department's anti-money laundering and cybersecurity regulations.”

Aside from the $30 million fine, Robinhood Crypto will be required to hire an independent consultant to conduct a comprehensive review of its compliance with DFS regulations.

In January 2019, the New York State regulator authorized Robinhood Crypto's applications for a virtual currency license and a money transmission license.

Robinhood provides commission-free cryptocurrency investing. Currently, the platform supports the purchasing, selling, and real-time market data for the following cryptocurrencies: BTC, bitcoin cash, bitcoin sv, chainlink, compound, DOGE, ETH, ethereum classic, litecoin, MATIC, shiba inu, solana, and uniswap.

Read also: Top cryptocurrency news: Ether creates history as key metric in ETH options exceeds BTC by 32 percent

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