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 it.
The NYDFS found the discrepancy following a supervisory review. This is the regulator’s first enforcement action in relation to the crypto industry.
The department cited Robinhood‘s failure to comply with the Bank Secrecy Act and anti-money laundering requirements.
“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 NYDFS added.
The investigation also found that the lack of a dedicated phone number on the Robinhood website for consumer complaints violated consumer rights.
Robinhood will now need to hire an independent consultant to assess regulatory compliance.