Fine

Genesis Global Trading, a subsidiary of Digital Currency Group (DCG), a prominent cryptocurrency conglomerate, has come to an agreement with the New York Department of Financial Services (DFS), as reported by Fortune. The settlement involves relinquishing its BitLicense, discontinuing operations, and paying an $8 million fine.
The New York regulator’s investigation revealed significant deficiencies in Genesis Global Trading’s anti-money laundering and cybersecurity protocols. A Genesis spokesperson explained to Decrypt that the entity, which held a virtual currency license with NYDFS, ceased operations in September 2023 and is voluntarily winding down for business reasons. The spokesperson stated, “Genesis had taken substantial measures to address these historical deficiencies and is pleased to resolve this matter.”
Under the settlement terms, Genesis Global Trading will surrender its BitLicense, halt operations in New York, and pay the $8 million penalty. DFS Superintendent Adrienne Harris emphasized the company’s failure to maintain a robust compliance framework, posing potential risks to both the company and its clients.
The company faced challenges amid the crypto market collapse of 2022, leading to increased regulatory scrutiny and eventual bankruptcy in early 2023. While not directly implicated in DCG’s bankruptcy, Genesis felt the impact, announcing the closure of its U.S. over-the-counter trading platform in September.
The DFS’s action against Genesis occurs amid New York’s pivotal moment in crypto regulation. The state has been a leader in crypto oversight, with DFS providing a comprehensive framework. The settlement, reflecting Genesis’s cooperation, underscores the need for strong compliance mechanisms in the evolving and risky domain of digital currencies. As the industry navigates this complex landscape, the Genesis case serves as a cautionary tale and a potential model for future regulatory actions.
The post <a rel="noopener noreferrer nofollow" href="https://www.unlock-bc.com/115923/genesis-settles-with-nydfs-forfeits-bitlicense-and-pays-8m-fine/">Genesis Settles with NYDFS: Forfeits BitLicense and Pays $8M Fine</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

Genesis Settles with NYDFS: Forfeits BitLicense and Pays $8M Fine

UNLOCK_ENG

Other articles published on Jan 13, 2024

South Korean Crypto Standoff: Country’s Regulator Issues Warning Against US Bitcoin Spot ETF Brok...

Microsoft Addresses Concerns Over Automatic Launch of Copilot in Windows 11

Set To Outperform Apex Rise: Analysts Highlight This Coin For Superior ROI

SEC Chairman Gary Gensler Issues Statement on Hacking Incident Ahead of Bitcoin Spot ETF Approval

Here’s When Cardano (ADA) Price Might See Massive Rally

Is XRP Overvalued? Analyst Doubts Sustainability, Calls for Caution Amidst Hype. Option2Trade Gro...

Join our free newsletter for daily crypto updates!