Robinhood’s Crypto Arm Gets $30 Million Funded by the New York State Department of Financial Services

The New York State Financial Conduct Authority fined Robinhood’s crypto arm $30 million (approximately Rs 230) for allegedly violating anti-money laundering, cybersecurity and consumer protection rules. . The New York State Department of Financial Services (NYDFS) said Tuesday that Robinhood Crypto has not devoted enough resources to address compliance and cybersecurity risks. The online trading app has been at the center of a number of regulatory probes, including those stemming from last year’s frenzy over meme stocks.

“We are pleased with the settlement in principle reached last year, and the previous disclosure in our public records is now final,” said Cheryl Crumpton, deputy general counsel for litigation and enforcement specified in Robin Hood herosaid on Tuesday.

Crumpton added that the company has made “significant progress” in building its legal, compliance and cybersecurity programs.

As part of the settlement, Robinhood Crypto NYDFS will also be required to hire an independent consultant to evaluate their compliance practices, the NYDFS said.

Earlier this year, a US-based securities trading and investment company announced that it is building an unattended wallet that will allow its customers to have full control of their cryptocurrencies in Web 3. Robinhood says this multi-method Web3 wallet will be launched as a standalone application.

Customers will be able to hold the keys to their own cryptocurrency and access decentralized applications (dApps) for trading and swapping cryptocurrencies with no network fees, non-fungible token storage. (NFT) and connect to the NFT market, profit using their assets and access a wide range of crypto assets.

At that point, Robinhood customers can join a non-custodial wallet by subscribing to the waitlist. A beta program is expected later this summer, and Robinhood notes that the wallet will be fully deployed by the end of the year.