Investment and banking app Robinhood has begun offering cryptocurrency trading for users in New York, after officially launching with support for seven cryptocurrencies, including Bitcoin SV (BSV), on the platform.
Robinhood recently secured a New York BitLicense, awarded by the New York Department of Financial Services (NYDFS) earlier this year. The launch marks the firm’s first venture into the regulated New York market, opening up trade in cryptocurrencies to its clients there for the first time.
BSV is among the seven cryptocurrencies supported, most notable for its superior technology, low transaction fees, fast transaction times and capacity for massive on-chain scaling.
The app also allows users to keep up to date with news and price data for a further 10 cryptocurrencies, suggesting the firm may continue to expand its offering to include more crypto markets in future.
Companies involved in “storing, holding, or maintaining custody or control of virtual currency on behalf of others” in New York are obliged to apply for a BitLicense before they can begin business in the state.
The stringent compliance requirements mean some businesses have chosen to avoid doing business in New York.
ShapeShift CEO Erik Voorhees previously described the position in New York as an “absurdity,” saying, “Here we are two miles from the Statue of Liberty and you cannot sell CryptoKitties in the state without that license. That’s the absurdity of what’s happened here.”
Yet with Robinhood one of the few firms to have successfully secured the license, the decision to lead with Bitcoin SV is even more significant.
The Silicon Valley-based company was founded in 2013 to offer commission-free trading in stocks and other investment products. At the end of its last funding round in 2018, the firm was valued at $5.8 million.
“We recently announced that Robinhood Crypto received the BitLicense and a money transmitter license to operate in New York. As of today, New Yorkers can officially invest in cryptocurrencies on Robinhood Crypto,” Robinhood announced in a blog post. “Currently, you can invest in seven cryptocurrencies on Robinhood Crypto…You can also track price movements and news for those and 10 additional cryptocurrencies. With New York, Robinhood Crypto is now available in 39 states.”
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