BTC

$56613.802

0.24%

ETH

$2387.891

0.32%

BNB

$505.74

1.42%

XRP

$0.552

0.34%

News

Robinhood Crypto Ban Leads Platform to $3.9 Million Fine

9 hours ago - Around 2 mins mins to read

Key Points:

  • California fined Robinhood Crypto $3.9 million for previously restricting users from withdrawing their purchased cryptocurrencies.
  • The state’s investigation found that Robinhood Crypto ban on withdrawal violated California’s commodities laws.
California’s Department of Justice fined Robinhood’s cryptocurrency trading platform $3.9 million for prior practices that violated state commodities laws.
Robinhood Crypto Ban Leads Platform to $3.9 Million Fine

Read more: Robinhood Crypto Futures May Launch in the US. and Europe Soon to Boost Markets

California Charges Robinhood Crypto Ban on Withdrawal with Securities Law Violation

The penalty announced on Wednesday was based on Robinhood Crypto bans between 2018 and 2022, during which the platform barred customers from being able to withdraw the cryptocurrencies they bought.

California regulators’ investigation treated the cryptocurrencies that were traded on Robinhood as commodities. It found that Robinhood Crypto let customers buy a digital asset but never give them custody, which is against state laws.

“Our investigation and settlement with Robinhood should send a strong message: Whether you’re a brick-and-mortar store or a cryptocurrency company, you must adhere to California’s consumer and investor protection laws,” said the Attorney General Rob Bonta.

Settlement Forces Robinhood to Rework Crypto Practices

Although Robinhood Crypto ban on withdrawal was terminated last year, it must now pay the piper for the sins of its past. As part of the settlement, the company must continue allowing customers to withdraw their cryptocurrencies and must revise its disclosures about asset custody.

Robinhood has also revealed that it received subpoenas from the California Attorney General, pertaining to its business operations, trading practices, and asset custody. The settlement will see the company, without admitting to any wrongdoing, go through an independent review by the SEC, reportedly investigating alleged violations of federal securities laws.

It is now upon Robinhood to live up to their words of transparency and let the customers be in custody of their crypto.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

California

Robinhood

Robinhood Crypto

Robinhood Crypto Ban

SEC

Avatar of Harold

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Robinhood Crypto Ban Leads Platform to $3.9 Million Fine

Key Points:

  • California fined Robinhood Crypto $3.9 million for previously restricting users from withdrawing their purchased cryptocurrencies.
  • The state’s investigation found that Robinhood Crypto ban on withdrawal violated California’s commodities laws.
California’s Department of Justice fined Robinhood’s cryptocurrency trading platform $3.9 million for prior practices that violated state commodities laws.
Robinhood Crypto Ban Leads Platform to $3.9 Million Fine

Read more: Robinhood Crypto Futures May Launch in the US. and Europe Soon to Boost Markets

California Charges Robinhood Crypto Ban on Withdrawal with Securities Law Violation

The penalty announced on Wednesday was based on Robinhood Crypto bans between 2018 and 2022, during which the platform barred customers from being able to withdraw the cryptocurrencies they bought.

California regulators’ investigation treated the cryptocurrencies that were traded on Robinhood as commodities. It found that Robinhood Crypto let customers buy a digital asset but never give them custody, which is against state laws.

“Our investigation and settlement with Robinhood should send a strong message: Whether you’re a brick-and-mortar store or a cryptocurrency company, you must adhere to California’s consumer and investor protection laws,” said the Attorney General Rob Bonta.

Settlement Forces Robinhood to Rework Crypto Practices

Although Robinhood Crypto ban on withdrawal was terminated last year, it must now pay the piper for the sins of its past. As part of the settlement, the company must continue allowing customers to withdraw their cryptocurrencies and must revise its disclosures about asset custody.

Robinhood has also revealed that it received subpoenas from the California Attorney General, pertaining to its business operations, trading practices, and asset custody. The settlement will see the company, without admitting to any wrongdoing, go through an independent review by the SEC, reportedly investigating alleged violations of federal securities laws.

It is now upon Robinhood to live up to their words of transparency and let the customers be in custody of their crypto.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Visited 46 times, 46 visit(s) today