The cryptocurrency firm Robinhood will make its presence felt in New York after the state gave approval to the firm to trade in seven cryptocurrencies, as per a blog report dated 24 January.
The virtual currency license is officially termed as the BitLicense. The BitLicense is a set of financial regulatory principles applicable to the state of New York. Robinhood also secured a money transmitter license in the state.
The latest offering is christened as Robinhood Crypto is already available in over 30 states. The platform will allow users to seamlessly buy, sell and store cryptocurrencies.
The blog headlined that commission-free cryptocurrency trading would be underway in New York over the course of a few months. Robinhood proudly backed its initiative stating that this was a step forward in its vision of ‘democratizing the financial system’.
The New York State Department of Financial Services (DFS) has also approved a money transmission license for the California based firm. The DFS cited that it has approved around 16 licenses so far to companies in the digital coin ecosystem.
Robinhood had announced its plans to launch commission-free cryptocurrency trade offering almost a year ago. This was in response to the rising consumer demand. Robinhood will allow users to trade in cryptocurrencies like bitcoin (BTC), ether (ETH), bitcoin cash (BCH) and litecoin (LTC), on its online portal.
Being an online brokerage platform, Robinhood allows retail investors to trade US stocks and exchange-traded funds. It levies no commission and competes with established brokerage firms such as TD Ameritrade and E*Trade Financial Corp.
Robinhood is a company valued at an estimated 5.6 billion US dollars and it is pushing further ahead to provide financial technology services. Last year, Robinhood launched a US checking and savings account. This comes with a debit card and does not mandate a minimum balance.
The blog ended on a positive note quoting :
“As we introduce new financial products, we’re committed to partnering with regulators to ensure compliance with industry requirements. Today’s announcement is evidence of this commitment.”
From what we could gather, high-profile members at Robinhood expressed the co-operation offered by DFS and looked forward to its ongoing guidance. It is truly encouraging that bureaucracy has been sidelined and there is an awareness to foster high technology.
With Robinhood on the horizon of New York state, much financial progress can be expected in time to come. With a host of other states already making use of the platform, the new launch in the progressive state would serve as a firm footing to make the US truly ‘decentralized and cashless’.