The New York Department of Financial Services (NYDFS) has announced that Genesis Global Trading, a subsidiary of Digital Currency Group, will pay an $8 million fine and surrender its BitLicense. The penalty comes after investigations found significant failings in the crypto platform’s anti-money laundering and cybersecurity programs.
Superintendent Adrienne A. Harris stated that Genesis Global Trading’s failure to maintain a functional compliance program showed a disregard for regulatory requirements and put both the company and its customers at risk.
The NYDFS discovered that the trading platform, the only entity within Genesis that held the BitLicense, did not meet the required compliance standards for the Bank Secrecy Act, Anti-Money Laundering, transaction monitoring, Suspicious Activity Report (SAR) filings, and Office of Foreign Assets Control (OFAC) screening.
Genesis Global Trading, which received the virtual currency business license from NYDFS in 2018, is not to be confused with Genesis Global Capital, which filed for bankruptcy in 2023. The state regulator clarified that the DCG subsidiary was not involved in the Gemini Earn program.
In addition to the fine and surrender of the BitLicense, Genesis Global Trading will also have to implement a comprehensive compliance program to ensure regulatory compliance in the future.
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– Categories: NYDFS, Digital Currency Group, Genesis Global Trading, BitLicense, Compliance
– Tags: NYDFS, Digital Currency Group, Genesis Global Trading, BitLicense, Compliance