Robinhood Financial LLC, one of the leading zero-fee online stockbrokers has finally secured New York BitLicense. What this means is that the financial services provided can now offer cryptocurrency services in New York legally. Notably, the company ventured into the cryptocurrency market in February last year 2018.
Zero-Fee Ethereum and Bitcoin Trading Product
The cryptocurrency industry is very competitive and only companies that have superior products are able to dominate and get customers. Robinhood Financial LLC worked smart to create a product that would allow it to penetrate the cryptocurrency market and get a firm footing quickly.
The product, Zero-fee trading in Ethereum and Bitcoin has gained massive traction since its introduction in February 2018. The BitLicense now allows the company to openly provide cryptocurrency services in New York but under the confines of the stipulated rules and regulations.
Reports indicate that another prominent company that is also keen on dominating the industry LibertyX was also awarded the license by New York Department of Financial Services. LibertyX is a renowned bitcoin ATM firm that is benefit hugely from this accreditation. They will now be able to get not only more customers but also investors who are interested in their business model and the cryptocurrency industry at large.
While speaking to the press, Robinhood Crypto confirmed the good news and stated that the virtual currency license also commonly referred to as BitLicense will give thousands of crypto enthusiasts residing in New York an opportunity to invest in their preferred cryptocurrencies through the Robinhood platform. The management also stated that this accreditation is a major step towards democratizing the traditional financial system and enhancing service delivery through application of blockchain technology.
Apart from giving investors, an opportunity to trade in Ethereum and bitcoin, Robinhood Financial LLC also offers additional trading options to investors. They can now trade in Dogecoin, Ethereum Classic, Bitcoin Cash, and Litecoin. More importantly, the financial institution is now fully operation in more than 30 states.
Other Large Financial Institutions Applied for License
Notably, the growth of cryptocurrency industry has attracted several other leading providers of financial institutions. One of the most notable one is Square that got the same BitLicense in July 2018. The cryptocurrency community has mixed perceptions about BitLicense and this emanates from the strict anti-fraud, anti-money laundering, and cyber security policies.
However, the strict regulations are meant to safeguard the industry by reducing the various risks associated with cryptocurrencies such as funding of terrorism and other vices. Despite the initial hiccup, a number of companies that are serious into venturing into trading of digital currencies have adopted in.
Back to the accreditation of Robinhood Financial LLC, this is a positive move as the company is headed towards an initial coin offering. Back in November 2018, the company management team appointed Jason Warnick, a former Amazon employee to work as the Chief financial officer. It is rumoured that an IPO is in the offing in the middle of this year and the current value of this financial company is $5.6 billion.