Robinhood Crypto Fined $30 Million by New York Regulator for ‘Significant Failures’ in Multiple Areas

Must read

The ‘Brussels Effect’ wields real influence over US crypto regulation

The right to privacy is enshrined in many legal traditions around the world. In the United States, it’s protected by the Fourth Amendment; in...

Lack of ‘qualified people’ without more Web3 education, say academics

Australian blockchain academics and educators have called for more robust Web3 education in schools, preparing students for a world that will be dominated by...

Warner Music Group partners with OpenSea to create more Web3 opportunities for artists

The company stated that select artists can launch their NFT collections and limited-edition projects on their own dedicated drop pages. 1174 ...

Market manipulation claims will be hardest ‘nut to crack’ in Bitcoin ETF approval — WisdomTree

“We’re all kind of watching this and seeing what’s going to happen,” said WisdomTree's Will Peck on spot Bitcoin exchange-traded funds in the...

Robinhood Crypto Fined $30 Million by NY Regulator for 'Significant Failures' in Several Areas

The New York State Department of Financial Services (DFS) has fined Robinhood Crypto $30 million for “significant failures in the areas of bank 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) 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 cybersecurity.”

The failures resulted in 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 business grew, Robinhood Crypto failed to invest the proper 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 shortcomings in the management and oversight of RHC’s compliance programs, including a failure to foster and maintain an adequate culture of compliance,” the announcement continues.

Besides the $30 million penalty, Robinhood Crypto will be required to retain an independent consultant that will perform a comprehensive evaluation of its compliance with the DFS regulations.

The New York State regulator approved Robinhood Crypto’s applications for a virtual currency license and a money transmission license in January 2019, stating at the time:

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

Robinhood offers commission-free crypto investing. The platform currently supports the 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 the DFS taking action against Robinhood Crypto? Let us know in the comments section below.

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 between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons, lev radin

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More articles

Latest article

The ‘Brussels Effect’ wields real influence over US crypto regulation

The right to privacy is enshrined in many legal traditions around the world. In the United States, it’s protected by the Fourth Amendment; in...

Lack of ‘qualified people’ without more Web3 education, say academics

Australian blockchain academics and educators have called for more robust Web3 education in schools, preparing students for a world that will be dominated by...

Warner Music Group partners with OpenSea to create more Web3 opportunities for artists

The company stated that select artists can launch their NFT collections and limited-edition projects on their own dedicated drop pages. 1174 ...

Market manipulation claims will be hardest ‘nut to crack’ in Bitcoin ETF approval — WisdomTree

“We’re all kind of watching this and seeing what’s going to happen,” said WisdomTree's Will Peck on spot Bitcoin exchange-traded funds in the...

Judge orders SEC to turn Hinman documents over to Ripple Labs after months of dispute

U.S. District Court Judge Analisa Torres overruled the SEC’s second attempt to withhold the documents relating to former Division Director William Hinman, who...