Robinhood: the pen platform closely watched by the SEC

Robinhood: the pen platform closely watched by the SEC

Summons – There Securities and Exchange Commission (SEC) takes a close interest in the crypto services of robinhood. The brokerage firm finds itself in the regulator’s sights after major players in the industry collapsed last year.

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SEC Investigating Robinhood’s Crypto Activities

In a document 10-K of February 27, Robinhood Markets indicated that she received a subpoena from the DRY, in December. This quote related to the brokerage company’s cryptocurrency listing, custody operations, as well as the ” platform operations of its digital asset business, following the bankruptcies of crypto giants like Three Arrows Capital, Celsius, and FTX.

Robinhood is none not on his first assignment to appear on the part of the authorities. The company had previously received citations from the California Attorney General in April 2021. Investigators wanted information on the crypto branch, the custody of client assets, as well as the listing of the cornerswithin the brokerage firm.

About four months later, in August 2021, the Massachusetts Securities Division investigated Robinhood, which was then suspected of targeting inexperienced investors. The brokerage firm is thus accustomed to checks and attacks from regulators.

On August 2 of last year, the Financial Services District of New York imposed a $30 million fine to the company’s crypto division, which would not ” invested the resources and attention necessary to develop and maintain a culture of compliance “.

The regulatory storm affecting the crypto industry does not spare Robinhood. During these bear markets, the SEC has been increasingly aggressive towards companies whose activities are related to cryptocurrencies. The regulator has greatly expanded its scope of action in the sectorand sometimes abusively.

The SEC hits hard on crypto exchanges! Anticipate future regulations by choosing a PSAN platform already registered with the AMF. To buy your cryptocurrencies, register now on eToro and start getting acquainted with the exciting world of blockchain technology (commercial link).

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