Robinhood app. Credit: Piotr Swat/Shutterstock.com Familiar Themes in DFS's First Enforcement Action Against Virtual Currency Company
The Robinhood Crypto order is the first major cryptocurrency-related enforcement action by DFS. It is consistent with increased attention by DFS on the industry in the last year.
August 17, 2022 at 10:45 AM
8 minute read
On Aug. 2, 2022, the New York State Department of Financial Services (DFS) announced a consent order with Robinhood Crypto (RHC), the virtual currency trading platform of mobile trading app provider Robinhood Markets, finding that RHC failed to maintain proper anti-money laundering (AML) and cybersecurity compliance programs. RHC agreed to a $30 million fine and an 18-month review by an independent compliance consultant who will report to DFS. Through this enforcement action, DFS has made clear its expectation that virtual currency companies, like traditional financial institutions, must invest in compliance programs to ensure they are commensurate with the risks and volume of their business, particularly for financial crimes compliance and cybersecurity.
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