New York’s top financial regulator fined Robinhood Crypto for alleged violations of money laundering and cybersecurity rules.
- Robinhood Crypto was fined USD $30 million.
- NYDFS imposed the sanction due to non-compliance with anti-money laundering regulations.
- This is not the first fine the popular brokerage platform a place to buy, sell and store cryptocurrency has received in the US.
The cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. unit of Robinhood will pay a $30 million fine to New York financial regulators for alleged violations of anti-money laundering rules.
New York State Department of Financial Services (NYDFS) announced this Monday the sanction imposed on Robinhood Crypto the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets division of the popular stock trading platform, by “significant failures” in the areas of bank secrecy law obligations, anti-money laundering (AML) and cybersecurity said the regulator.
The agency contended that, after conducting an investigation, it had found that the unit had “ significant shortcomings “in its AML anti-money-laundering laws, regulations, and procedures that aim to end the unlawful income practices. compliance programs. According to NYDFS, the failures were the result of deficiencies in the company’s management and oversight of its compliance programs. Superintendent Adrienne A. Harris said in the communiqué :
As its business grew, Robinhood Crypto failed to invest investing is when you put money in a financial scheme with the intent of making a gain. adequate resources and attention to developing and maintaining a culture of compliance, a failure that resulted in significant violations of the Department’s cybersecurity and anti-money laundering regulations.
The regulator found Robinhood Crypto guilty of violating several of its compliance rules and, in addition to the fine, has been asked to hire an independent consultant to assess its compliance with the regulations. According to Wall Street Journal which first reported the news, this is the first cryptocurrency enforcement action of the NYDFS.
Second fine for Robinhood
As the report recalls, Robinhood had already reported in July of last year that it expected to receive a fine from New York regulators because of an investigation that “ focused primarily on issues related to cyber security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. and money laundering. “and found that the company violated numerous regulatory requirements.
In a document filed with the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC) at the time, the company had advanced about the investigation and a settlement with NYDFS. Regarding this week’s move, the associate general counsel for litigation and regulatory compliance of Robinhood Cheryl Crumpton wrote in an email to CoinDesk :
We are pleased that the agreement in principle reached last year and previously disclosed in our public filings is now final. We have made significant progress in building industry-leading legal, compliance and cybersecurity programs, and will continue to prioritize this work to better serve our customers. .
This is not the first time a U.S. agency has fined the company. In mid-2021, the Financial Industry Regulatory Authority (FINRA) had already sanctioned to Robinhood with a fine of USD $70 million for failing to adequately protect its customers. It was the largest fine FINRA has ever levied.
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Article by Hannah Estefania Perez / DiarioBitcoin
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