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Genesis Global Trading Exits New York Following Landmark Court Settlement

Press Releases Crypto News BeInCrypto Genesis Global Trading Exits New York Following Landmark Court Settlement

Genesis Global Trading, a prominent cryptocurrency firm, has settled with the New York Department of Financial Services (NYDFS).

As part of the agreement, Genesis Global Trading will relinquish its authorization to carry out operations within the state.

Genesis Global Trading to Pay $8 Million Fine

In a January 12 statement, Genesis consented to pay the New York financial regulator an $8 million fine. The firm also agreed to discontinue its operations in the state and voluntarily surrender its BitLicense.

The BitLicense is a prestigious regulatory approval authorizing cryptocurrency enterprises to conduct operations within New York. The license requires strict adherence to robust compliance with know-your-customer (KYC) protocols, anti-money laundering (AML) measures, and prescribed capitalization requirements.

Per the statement, the settlement comes in the wake of a thorough investigation by New York authorities that revealed substantial shortcomings in the firm’s anti-money laundering and cybersecurity programs.

Superintendent Adrienne Harris emphasized the significance of adherence to regulatory requirements. The regulatory chief highlighted the serious implications of failing to maintain a functional compliance framework.

“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,” Harris added.

Meanwhile, NYDFS clarified that this settlement pertained specifically to Genesis Global Trading, distinct from Genesis Global Capital, the cryptocurrency lender that filed for bankruptcy last year. Prominent crypto investment firm Go to Source to See Full Article
Author: Oluwapelumi Adejumo

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