Violating the Rules, Robinhood Faces a $30 Million Penalty!

 Robinhood, a crypto trading platform that facilitates users in transactions and buying and selling has faced problems after it was reported that the crypto broker had violated some certain rules.


In implementing crypto laws, the New York States Department of Financial Services (DFS) has imposed penalties on Robinhood for crypto-related crimes it has committed.


The Wall Street Journal reports marketplace arm Robinhood is facing a $30 million fine for violating regulations related to anti-money laundering and cybersecurity.



Robinhood was also directed to seek the services of an independent consultant to assess NYDF's regulatory compliance as part of its recovery efforts.


The New York department assessed Robinhood's weaknesses in terms of company management in maintaining a culture of compliance and allocating sufficient resources to the programs it runs.


In addition, Robinhood is also seen as not having enough resources in carrying out the Bank Secrecy Act and anti-money laundering compliance.


Statement by DFS Officer, Adrienne A.Harris, DFS will continue the investigation to take action against the license holders who violate the laws and regulations of the department. The investigation is to protect users and ensure the safety and soundness of an institution.

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