Key takeaways:
- Genesis Global Trading has consented to a settlement with the NYDFS in which it gives up its right to operate within the state.
- The NYDFS clarified that Genesis Global Trading—a distinct organization from Genesis Global Capital—was impacted by the settlement.
Genesis Global Trading, a cryptocurrency company, has consented to a settlement with the New York Department of Financial Services (NYDFS) in which it gives up its right to operate within the state.
According to a January 12 release, Genesis consented to give up its BitLicense, which it has held since 2018, pay an $8 million fine to the NYDFS, and stop operating in New York.
Following an inquiry, New York authorities found “significant failings” in Genesis’ cybersecurity and anti-money laundering programs, which led to the settlement. Adrienne Harris, superintendent of the NYDFS, said:
“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 the statement, the NYDFS clarified that Genesis Global Trading—a distinct organization from Genesis Global Capital—was impacted by the settlement.
In October, the Attorney General of New York launched a complaint against Digital Currency Group (DCG), Genesis Global Capital, and Gemini for allegedly scamming investors through the Gemini Earn program.
The parent business of Genesis Global Trading did not include Genesis Global Trading in its January 2023 Chapter 11 bankruptcy filing.
The settlement followed concerns made by New York’s Office of the Comptroller concerning the administration of NYDFS’ BitLicense applicants. Since 2015, cryptocurrency companies doing business in the state have had to apply for a BitLicense via the regulator.
According to a statement released on Wednesday, the US Securities and Exchange Commission has approved each of the 11 spot Bitcoin Exchange Traded Funds (ETF). With these approvals, the sector is at a historic moment. This will enable asset management firms like Valkyrie, BlackRock, and Grayscale to oversee their own ETFs with a Bitcoin concentration. The notable list of Bitcoin ETFs approved by the SEC marks a significant shift in the cryptocurrency business.
