Genesis Global Trading Settles with New York DFS
Genesis Global Trading, a subsidiary of Digital Currency Group, has reached a settlement with the New York Department of Financial Services (DFS) following an investigation into anti-money laundering (AML) and cybersecurity deficiencies. The company will surrender its BitLicense, which is required for virtual currency activities in New York, and pay an $8 million fine.
The DFS conducted two examinations of Genesis and discovered AML and cybersecurity failures. The firm allegedly made little effort to address these issues, including not appointing a dedicated officer for AML compliance. Additionally, Genesis failed to provide proper disclosures to its customers.
An official announcement regarding the settlement is expected later today.
Hot Take: Genesis Global Trading Faces Consequences for Compliance Failures
Genesis Global Trading’s settlement with the New York DFS highlights the importance of maintaining a functional compliance program in the crypto industry. By failing to address AML and cybersecurity deficiencies, the company put itself and its customers at risk. This case serves as a reminder that regulatory requirements must be taken seriously to prevent potential threats. With the surrender of its BitLicense and an $8 million fine, Genesis Global Trading faces significant consequences for its compliance failures.
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