Genesis – a cryptocurrency market-maker and brokerage agency – failed to take care of an efficient compliance program for anti-money laundering and Bank Secrecy Act necessities and didn’t file ample Suspicious Activity Reports, which requires monetary establishments to flag sure transactions to regulation enforcement.
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The firm didn’t instantly reply to a request for remark.
“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,” stated NYDFS Superintendent Adrienne Harris in an announcement.
As a part of the penalty, Genesis will surrender its “BitLicense,” which New York requires that cryptocurrency firms receive to have the ability to supply sure providers inside the state. The BitLicense requires that firms adjust to know-your-customer, anti-money laundering and capital necessities.
Genesis has held a BitLicense since 2018.
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The transfer follows crypto lender Genesis Global Capital – one other DCG entity separate from Genesis Global Trading – submitting for chapter final yr after it was hit by the collapse of cryptocurrency alternate FTX. That entity didn’t maintain a BitLicense from NYDFS.