Genesis Global Trading, a cryptocurrency firm, has agreed to a settlement with the New York Department of Financial Services (NYDFS). As part of the settlement, the company has relinquished its right to operate within the state. The NYDFS has clarified that the settlement impacts Genesis Global Trading, which is a separate entity from Genesis Global Capital.
As per a release on January 12, Genesis has agreed to surrender its BitLicense, which it has held since 2018, pay an $8 million fine to the NYDFS, and cease operations in New York. This decision follows an investigation by New York authorities that revealed significant shortcomings in Genesis’ cybersecurity and anti-money laundering programs.
Adrienne Harris, the superintendent of the NYDFS, stated, “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.”
In October, the Attorney General of New York filed a complaint against Digital Currency Group (DCG), Genesis Global Capital, and Gemini for allegedly defrauding investors through the Gemini Earn program. However, Genesis Global Trading was not included in the parent company’s Chapter 11 bankruptcy filing in January 2023.
The settlement comes in the wake of concerns raised by New York’s Office of the Comptroller regarding the administration of NYDFS’ BitLicense applicants. Since 2015, cryptocurrency companies conducting business in the state have been required to apply for a BitLicense through the regulator.
In other news, the US Securities and Exchange Commission has approved all 11 spot Bitcoin Exchange Traded Funds (ETF). This marks a historic moment for the sector, allowing asset management firms like Valkyrie, BlackRock, and Grayscale to manage their own ETFs with a Bitcoin focus. The approval of these Bitcoin ETFs by the SEC signifies a major shift in the cryptocurrency industry.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Adrienne Harris |
| Companies | Genesis Global Trading, Gemini, Digital Currency Group (DCG), Genesis Global Capital, US Securities and Exchange Commission, Valkyrie, New York Department of Financial Services (NYDFS), BlackRock, Grayscale |
| Currencies | Bitcoin |
| Securities | None |
