Genesis Global Trading, a subsidiary of the Digital Currency Group, recently reached a settlement with the New York State Department of Financial Services (NYDFS). This agreement involves a penalty of $8 million following allegations of failing to comply with virtual currency and cybersecurity regulations. These shortcomings heightened the company’s vulnerability to illicit activities and cybersecurity threats.<\/p>\n
NYDFS’s investigation, which included routine examinations and an enforcement inquiry, revealed that Genesis Global Trading<\/a> did not meet the required standards in several critical areas. These include compliance with the Bank Secrecy Act\/Anti-Money Laundering (BSA\/AML) regulations, effective transaction monitoring, the filing of Suspicious Activity Reports (SARs), adherence to the Office of Foreign Assets Control (OFAC) screening requirements, and maintaining robust cybersecurity measures. The NYDFS particularly pointed out that the company’s cybersecurity risk assessment was inadequate, lacking a comprehensive approach and failing to pinpoint areas in need of improvement.<\/p>\n As part of the settlement, Genesis Global Trading is mandated<\/a> to cease its operations within New York State and surrender its BitLicense, a prerequisite for conducting virtual currency-related activities in the state. NYDFS Superintendent Adrienne A. Harris expressed her concerns regarding the company’s disregard for maintaining a functional compliance program, which exposed both the firm and its clients to potential risks.<\/p>\n Meanwhile, the New York State Department of Financial Services (DFS) under Superintendent Adrienne A. Harris continues to lead the way in the prudential regulation of virtual currency. The DFS, with Harris at the helm, has been instrumental in shaping regulatory frameworks at the state level and collaborating with global regulators, including those in Illinois, California, the United Kingdom, the European Union, the United Arab Emirates, and Singapore. The VOLT initiative, spearheaded by Superintendent Harris, has seen the DFS team grow by over 60 experts, enhancing licensing oversight and supervision in areas such as BSA\/AML laws, financial crimes, data governance, and cybersecurity. The DFS has also fortified its policies and procedures, playing a pivotal role in the development of regulatory standards worldwide.<\/p>\n NEW: Superintendent Adrienne A. Harris Announces $8 Million Penalty Against Genesis Global Trading, Inc. After DFS Investigation Finds Significant Failings in Anti-Money Laundering and Cybersecurity Programs<\/p>\n More here: https:\/\/t.co\/lVY2TfitRr<\/a> pic.twitter.com\/eiyYsgrWUY<\/a><\/p>\n — NYDFS (@NYDFS) January 12, 2024<\/a><\/p><\/blockquote>\nCease Operations in New York and Surrender BitLicense<\/h2>\n
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