Genesis Global Trading Agrees to $8M Settlement Fine and Bitlicense Forfeiture
Genesis Global Trading has reached an agreement with the New York State Department of Financial Services (DFS) to pay an $8 million penalty and forfeit its Bitlicense. The DFS found that Genesis did not comply with financial regulations, including the Bank Secrecy Act and anti-money laundering protocols. The company also failed to file suspicious activity reports as required. The DFS stated that Genesis Global Trading’s lack of a functional compliance program showed a disregard for regulatory requirements and put its customers at risk.
Genesis Global Trading’s Relationship with Digital Currency Group
Genesis Global Trading operates independently from its sister company, Genesis Global Capital. Both entities are subsidiaries of Digital Currency Group (DCG).
DFS’s Regulatory Actions and Milestones
The DFS emphasized its position as a global leader in cryptocurrency regulation, pointing to its actions against Binance and Coinbase. The DFS ordered Paxos to halt the minting of the BUSD stablecoin, making it the first regulator to address Binance. Additionally, the DFS highlighted its $100 million settlement with Coinbase, which it described as one of the largest virtual currency settlements in the world.
Genesis Global Trading’s Bitlicense Relinquishment
In 2018, Genesis Global Trading obtained authorization from the DFS to operate in New York State. However, as part of the settlement agreement, the company will surrender its Bitlicense and is in the process of winding down its operations.
Hot Take: Genesis Global Trading Faces Consequences for Compliance Failures
Genesis Global Trading’s agreement to pay an $8 million settlement fine and relinquish its Bitlicense reflects the serious consequences that can arise from compliance failures. The actions taken by the DFS demonstrate its commitment to enforcing regulatory requirements and protecting consumers in the cryptocurrency industry. This case serves as a reminder for all crypto companies to prioritize compliance and maintain functional programs to ensure the security and trustworthiness of their operations.
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