NYDFS Enters into Consent Order with Genesis Global Trading for Virtual Currency and Cybersecurity Violations | Practical Law

NYDFS Enters into Consent Order with Genesis Global Trading for Virtual Currency and Cybersecurity Violations | Practical Law

The New York Department of Financial Services (NYDFS) entered into a consent order with Genesis Global Trading, Inc. related to violations of NYDFS virtual currency and cybersecurity regulations.

NYDFS Enters into Consent Order with Genesis Global Trading for Virtual Currency and Cybersecurity Violations

by Practical Law Finance
Published on 18 Jan 2024USA (National/Federal)
The New York Department of Financial Services (NYDFS) entered into a consent order with Genesis Global Trading, Inc. related to violations of NYDFS virtual currency and cybersecurity regulations.
On January 12, 2024, the New York Department of Financial Services (NYDFS) entered into a consent order with Genesis Global Trading, Inc. in connection with violations of NYDFS virtual currency (VC) and cybersecurity regulations. Genesis has held a NYDFS BitLicense to engage in VC activity since 2018 and is primarily engaged in non-custodial, over-the-counter trading of digital currencies.
In the course of routine examinations and a subsequent enforcement investigation, NYDFS found that Genesis failed to:
Genesis neither admitted nor denied the charges and agreed to settlement terms that require it to:
  • Pay a civil monetary penalty of $8 million.
  • Cease operations.
  • Surrender its New York State BitLicense to conduct VC business activity.
For additional information on the NYDFS regulatory framework for VC, see Practice Note, Virtual Currency Business Regulation (NY State).