Genesis Global Trading Settlement with NYDFS
Genesis Global Trading, a subsidiary of the Digital Currency Group, recently agreed to an $8 million settlement with the New York State Department of Financial Services (NYDFS) for violating virtual currency regulations. This resulted from an inquiry that found several critical compliance deficiencies, most notably related to cybersecurity protocols.
Non-Compliance Penalties by NYDFS
The primary infractions were the company’s failure to comply with the Bank Secrecy Act/Anti-Money Laundering regulations and weak cybersecurity controls. The NYDFS mandated Genesis to discontinue operations within New York State and surrender its BitLicense.
NYDFS’s Vigilance in Safeguarding Virtual Currency
NYDFS’s Superintendent Adrienne A. Harris has been keen on regulating safeguarding the virtual currency industry, emphasizing prudential oversight and the elevation of global regulatory standards. The agency has issued eight groundbreaking regulatory guidances and aims to penalize Genesis over $140 million.
Defrauding Investors by Hiding $1 Billion in Losses
Genesis Global Trading is accused by the New York Attorney General of defrauding investors. The company is currently in bankruptcy proceedings and striving to recover investor funds, while DCG plans to contest the Attorney General’s lawsuit.
NYDFS’s Commitment to Enforcing Standards
The $8 million penalty for Genesis is part of NYDFS’s broader initiative to regulate the virtual currency sector to protect consumers and institutions from potential threats.
Hot Take: NYDFS’s Impact on the Virtual Currency Industry
The news is a reminder of the importance of adherence to virtual currency regulations. Genesis’ situation serves as an example of the consequences of regulatory non-compliance, highlighting the NYDFS’s strict and proactive oversight to maintain the integrity of the virtual currency industry.
By
By
By
By
By