The New York Department of Financial Services said Digital Currency Group subsidiary Genesis Global trading will pay an eight million dollars penalty and surrender its license from the regulator after an investigation found significant failings in the company’s anti-money laundering and cyber security programs.
Genesis – a crypto currency market-maker and brokerage firm – failed to maintain an effective compliance program for anti-money laundering and Bank Secrecy Act requirements and did not file sufficient Suspicious Activity Reports, which requires financial institutions to flag certain transactions to law enforcement.
“Genesis Global Trading’s failure to maintain a functional compliance program demonstrated a disregard for the Department’s regulatory requirements and exposed the company and its customers to potential threats,” said NYDFS Superintendent Adrienne Harris in a statement.
As part of the penalty, Genesis will give up its “Bit License,” which New York requires that crypto currency companies obtain to be able to offer certain services within the state. The Bit License requires that companies comply with know-your-customer, anti-money laundering and capital requirements.
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