Robinhood’s Crypto Division to Pay a $30M Fine
The New York State Department of Financial Services (NYDFS) has fined Robinhood’s cryptocurrency division $30 million for violating AML regulations and cybersecurity policies, The Wall Street Journal reports.
NYDFS has reportedly found a non-compliance following a supervisory review. This is the first enforcement action of the regulator in relation to the crypto industry.
The department has cited Robinhood’s failure to comply with the Bank Secrecy Act and anti-money laundering requirements.
The NYDFS has added:
“The firm’s cybersecurity program did not adequately consider operational risks, and its policies were not in line with cybersecurity and virtual currency regulations.”
The investigation has also found that the lack of a dedicated phone number on the Robinhood website for consumer complaints violated consumer rights.
