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New York Sanctions $30 Million Robinhood Cryptocurrency Market

Robinhood allows you to trade cryptocurrencies and stocks in the US. | Font: spill

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Buying and selling company Cryptocurrencies and Robinhood stocks was fined $30 million by the city. New York.

According to the State Department of Financial Services, Robin Hood violated state regulations regarding the money side and cyber security.

Robinhood in sight

In a statement, the department said it found significant shortcomings in the company’s compliance programs after a supervisory review.

Apparently, there were not enough people working on the company’s compliance program to combat money laundering. Robin Hood. The company has also failed to move away from a manual monitoring system, which is no longer sufficient as it is much larger than when it started.

In addition, the department found that policies under the company’s cybersecurity program Robin Hood they do not fully comply with official cybersecurity and virtual currency regulations.

Was there a lack of security?

regulator New York also mentioned that Robin Hood incorrectly certified compliance with the Transaction Supervision Regulation and the Cybersecurity Regulation. Because it did not fully comply with the state’s cybersecurity regulations, Robin Hood broke the law by claiming to obey it.

Finally, the regulator said that Robin Hood failed to comply with consumer protection requirements by not maintaining a separate phone number (and displaying it on its website) specifically for consumer complaints.

In addition to having to pay $30 million, Robin Hood You must engage an independent consultant who will evaluate whether you have taken adequate steps to correct your violations and shortcomings in accordance with the agreement. The company has now announced that it will lay off 23% of its workforce due to inflation and falling stock prices. cryptocurrencies.

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Source: RPP

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