USD 30 MILLION FINE TO ROBINHOOD CRYPTO LLC

Cryptocurrencies have emerged and have positioned themselves despite the intense criticism and controversy that have arisen around them; today, their use and access are not restricted at all; any person or company can access the digital financial market. You can use a reliable trading platform like the bitcoinloophole  for more information.

Its popularity has been expanding over the years, contributing to the notable increase in the prices of digital currencies that make up the crypto market, to the point that Bitcoin has managed to reach a historical value exceeding 62,000 dollars.

Although many organizations and government-type entities have not been able to digest the use of cryptocurrencies for a more regulatory and control issue than for the ability of these instruments to be used as a means of exchange in international trade operations.

Role of crypto regulators

The regulation and creation of legal instruments to control and supervise the use and management of digital currencies is a relatively extensive and complex issue since governments are beginning to tighten their policies against illicit financing that can be generated through the use of cryptocurrencies.

It is not an easy task due to the evolutionary capacity of blockchain technology and how cryptographic operations have diversified.

Everything could be based on the creation of centralized policies that could be executed through previously established financial institutions and that would serve as means of control not only of the price of these cryptocurrencies but also of the users, the transactions, and the companies that operate. as crypto exchange platforms.

The transformation of the legal instruments applied to the digital currency market represents essential changes for all cryptocurrency investors due to the ethereal effect they can have on the price of assets.

The history of Bitcoin and Ethereum (considered the two cryptocurrencies with the highest market capitalization) has shown how the establishment of laws and regulations for the crypto ecosystem directly influences their value, causing their price to plummet on many occasions.

Cyber security and cryptocurrencies

We are growing in an era where technology and access to information are the main elements that characterize social, financial, and labor evolution.

The creation of the blockchain could be considered a technological invention that could solve many problems related to the inappropriate use of information and, in turn, the reduction of high commissions for commissions to third parties that often create limitations to access from any part of the world.

With the evolution of Bitcoin, a series of concepts have also come together where cryptocurrencies have been involved with the kidnapping of valuable information not only for large, medium, and small companies but also for individuals; this illicit act is known as ransom-ware.

The kidnapping of data or information is perhaps the most common illicit act today, where access to information worldwide is just a click away and may not be seen to diminish or disappear in the short term.

For this reason, the countries are preparing a legal compendium that can directly put an end to this practice of cyber theft that is transformed into the use of cryptocurrencies as an instrument of value to transfer funds that finance illicit activities.

Actions executed on Robinhood

On this occasion, the Crypto Commerce unit of the renowned crypto company Robinhood attracted the eyes of the Department of Financial Services of the State of New York, which charged the company with alleged illicit uses of crypto assets, which incurs in violation of the regulations linked against money laundering.

On the other hand, it is considered an outstanding element that affects cyber security because the crypto company did not certify the programs linked to this vulnerable element of the digital financial market.

The fine imposed by the control body totaled 30 million dollars so that this company could prioritize the protection of its users before its own financial interests.

Conclusion

The main objective of government organizations focuses on protecting crypto users, first of all, due to the volatility and high level of speculation, which is linked to a high level of investment risk.

On the other hand, there is the aspect with which a fight of several years has not been able to culminate, and that is the use of cryptocurrencies to promote and finance illicit activities and the most complicated thing without being able to be controlled.