New York Regulator Fines Robinhood Crypto $30 Million
The New York State Department of Financial Services (NYDFS) has imposed a $30 million fine on the cryptocurrency trading arm of brokerage Robinhood Markets Inc., The Wall Street Journal reports. The financial regulator said the crypto company failed to enforce anti-money laundering and cyber security measures.
“As the business grew, Robinhood Crypto failed to devote adequate attention and resources to developing and maintaining a culture of compliance, which resulted in serious violations of the Department of Money Laundering and Cyber Security regulations,” appointed NYDFS Superintendent Adrienne A. Harris.
Robinhood disclosed the NYDFS investigation in an SEC filing in 2021, which saw significant gains amid a surge in demand for stocks and cryptocurrencies. As the company grew, its problems became more common.
Despite these shortcomings, the NYDFS said that Robinhood has applied for a license from the regulator, claiming that it is fully compliant with anti-money laundering and cybersecurity laws.
With the fine, Robinhood’s cryptocurrency trading division becomes the first U.S. cryptocurrency-focused entity to be disciplined by the NYDFS for violating the department’s rules regarding virtual currency, money transfers, transaction monitoring, and cybersecurity.
