DFS Fines Robinhood for $30 Million

The crypto division of Robinhood, a financial services giant, received a $30 million fine from the New York Department of Financial Services (DFS). Robinhood was fined due to failing to comply with crypto regulations in multiple violations.

According to a statement made by the DFS, cryptocurrency companies are not exempt from having to comply with the same regulations as traditional financial service companies.

After an investigation, the DFS found that Robinhood Crypto did not have adequate cybersecurity and anti-money laundering measures in place. There also wasn’t any customer support phone number listed on Robinhood’s website.

Robinhood’s representative stated that the company will do everything in its power to comply with the regulations from now on. The financial service provider’s current focus is on managing costs amid the bearish crypto market. For this reason, in April, Robinhood let go 9% of its workforce.