- Robinhood and LibertyX granted the BitLicense
- The license grants both firms the right to conduct cryptocurrency business in New York
- Robinhood also received a money transmission license
According to a January 24, 2019 press release, the New York State Department of Financial Services (DFS) has granted a Bitlicense to Robinhood and LibertyX.
“Today’s approvals add to the growing list of responsible virtual currency providers who recognize and appreciate how a comprehensive regulatory framework fosters a competitive marketplace that benefits both consumers and industry,” said Superintendent Vullo.
Robinhood Enter New York
By granting Robinhood a BitLicense, they are now authorized to trade seven cryptocurrencies in the state of New York including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). According to the announcement, Robinhood was also granted a money transmission license.
The management of Robinhood has since expressed their gratitude at receiving the license.
“We’re delighted that Robinhood Crypto has been granted a virtual currency license and a money transmitter license in New York. This will complement the larger suite of investment services that New Yorkers already have access to on the Robinhood platform,” said Vlad Tenev, Co-Founder and Co-CEO of Robinhood Markets, Inc.
The rumors of Robinhood seeking a US trading license began during the summer of 2018, a few months after they began offering zero-fee cryptocurrency trading and secured over a million signups and by May 2018, had raised $363 million to expand their platform.
As of now, Robinhood has a valuation of over $5.6 billion and is reportedly pursuing an initial public offering in the near future.
Another firm that received its Bitlicense is LibertyX, a firm which allows customers to purchase cryptocurrency using debit cards.
With its new license, LibertyX will be able to bring its services to New York, adding to the thousands of outlets they already have.
“After an extensive review process, we are delighted to receive the blessing of the NYDFS (BitLicense) and offer the first debit card Bitcoin purchasing options to New York State residents,” said Co-Founder & CEO of LibertyX Chris Yim.
About the License
The BitLicense was first introduced in 2015 and grants firms the right to conduct cryptocurrency business in the state of New York according to government regulations.
Previous recipients include NYDIG, Circle and Square.