Robinhood Launches Crypto Trading In New York, Offering 7 Cryptocurrencies
Robinhood has officially launched trading for seven cryptocurrencies in the state of New York, the firm announced via a blog release on May 23.
The platform, popular with stock and crypto investors alike, has said that its Robinhood Crypto app is available for New Yorkers, who can now use it to access trades for cryptocurrencies.
The seven currently supported by the app are Bitcoin (BTC), Ethereum (ETH), Bitcoin cash (BCH), Litecoin (LTC), Bitcoin SV (BSV), Ethereum Classic (ETC), and Dogecoin (DOGE).
The announcement follows an earlier one that stated the Silicon Valley-based startup had received approval to offer its services to residents of the state of New York.
In January this year, the New York Department of Financial Services (NYDFS) granted Robinhood the BitLicense, allowing it to offer crypto trading services to investors in the Empire State. The startup also received a license that allows it to operate as a money transmitter.
According to the platform’s blog post, users will get more than just access to investing in the identified cryptocurrencies on the Robinhood Crypto app.
Investors are also able to track the price movements as well as a news feed for the seven crypto assets. The users can also track and read the news on an extra 10 cryptocurrencies.
New York has maintained a stringent regulatory oversight on the virtual currency market. The NYDFS states that any company that either has customer crypto holdings, or stores and maintains custody of these crypto assets on behalf of investors, must acquire the BitLicense.
The requirement was first introduced in 2015, and several top crypto-focused companies have applied for and acquired it over the years. Some of these companies include Square, Coinbase, BitPay, and Circle.
However, many others have chosen to keep off the state for the reason of avoiding the stringent requirement. They have become what the crypto community calls BitLicense refugees- essentially crypto startups that have refused to offer their services in the state. Two of these “refugees” are crypto exchanges Kraken and Shapeshift.
The NYDFS recently rejected an application by crypto exchange Bittrex for the license, reportedly due to concerns about the platform’s compliance deficiencies in AML and KYC procedures.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.