CoinShots Logo
Robinhood's Crypto Division Slapped With $30M Fine
The retail investing platform has been fined $30 million by the New York State Department of Financial Services for allegedly failing to comply with anti-money laundering and cybersecurity regulations.
Ankita K.
2:18 2nd Aug, 2022
Markets

Robinhood's crypto unit has been fined $30 million by the New York State Department of Financial Services (NYDFS), which alleges that the company violated anti-money laundering and cybersecurity regulations.

According to the release, the NYDFS found the alleged failures through a supervisory exam and a subsequent enforcement investigation. This is the regulator's first crypto enforcement action.

The NYDFS said that Robinhood's Bank Secrecy Act and anti-money-laundering compliance programs weren't adequately staffed. It added that the firm's cybersecurity program didn't properly address the company's operational risks, nor did its policies comply with the regulator's cybersecurity and virtual currency regulations.

The investigation also found that by not having a dedicated phone number on its website for consumer complaints, Robinhood had failed to comply with consumer-protection requirements.

"DFS will continue to investigate and take action when any licensee violates the law or the Department’s regulations, which are critical to protecting consumers and ensuring the safety and soundness of the institutions,” superintendent Adrienne Harris said.

Robinhood will now be required to maintain an independent consultant to evaluate its compliance with the state regulator's rules and its remediation efforts.

Shares in the retail investment platform were down marginally at the open on Tuesday, losing just over 1% following the news. The firm will post its second quarter earnings on Wednesday.

Source



CoinShots Logo

Social

Get in touch:

© 2022 Coinshots (AtlasZero LLC). All rights reserved.