[2019-1-24]Robinhood, LibertyX Receive Licenses from New York Regulators

[vit05]

coindesk

Stock trading startup Robinhood and bitcoin ATM provider LibertyX have become the latest companies to be granted New York’s BitLicense.

The New York Department of Financial Services (NYDFS) announced Thursday that it was granting Robinhood Crypto, a subsidiary of the main firm, and Moon Inc., which does business under the LibertyX moniker, virtual currency licenses, as well as a money transmission license for Robinhood.

NYDFS superintendent Maria Vullo contended in a statement that New York has a “flourishing financial technology sector” thanks in part to its regulatory regime.

In a statement, Robinhood co-founder and co-CEO Vlad Tenev said the new licenses “will complement the larger suite of investment services that New Yorkers already have access to on the Robinhood platform.”

“The NYDFS has been very helpful throughout this process, and we look forward to their ongoing guidance as we prepare to launch Robinhood Crypto in New York,” he added.

Robinhood has provided crypto trading services since February 2018, when it first launched bitcoin and ether products to residents of a select few states. At press time, it also offers trading options for bitcoin cash, litecoin, dogecoin and ethereum classic.

While New York residents did not previously have access to Robinhood’s services, the company said it would be rolling out across the state “in the coming months.”

Similarly, LibertyX co-founder and CEO Chris Yim said his company was “delighted” to receive the BitLicense, “and offer the first debit card bitcoin purchasing options to New York State residents.”

The company will be the first licensed firm to allow residents to buy bitcoin using debit cards through traditional ATMs, according to the release.

That being said, bitcoin teller machine operator Coinsource, which makes specialized bitcoin ATMs, received a BitLicense late last year.

About 16 different companies now possess the controversial virtual currency license, which NYDFS first launched in 2015.


This option of being able to buy Bitcoins using ATM Debit Card is very interesting. New York is one of the 3 cities that receive the most tourists in the world. I believe one of the biggest use cases for Bitcoin will be among tourists, so having thousands of ATMs around the town will be very interesting.

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[buwaytress]

Pretty decent coup for Robinhood, they've been moving up the ranks quite progressively since I heard of them only last year. Major news for their investors, not sure if that means their userbase will increase but can't hurt to be in the same league as the big boys now.

This option of being able to buy Bitcoins using ATM Debit Card is very interesting. New York is one of the 3 cities that receive the most tourists in the world. I believe one of the biggest use cases for Bitcoin will be among tourists, so having thousands of ATMs around the town will be very interesting.

Kind of what I thought when the Bitcoin ATM opened in Schiphol last year: 3rd busiest airport, and mostly tourists and business people, and several Bitcoin-friendly locations, big concentration of nodes and p2p traders, even miners, and Arnhem the Bitcoin city... list goes on. But the machine's not been updated on the ATM radar for a while, and on 2 visits there myself about an hour each, not a single person used it.

Tourists buying Bitcoin at 10% premium? Don't think so.

[cr1776]

Given comments like AOC's desire for a 70% marginal tax rate and Warren's wish for a 2-3% annual wealth tax with a 40% exit tax - like the original income tax, bring promised as applying only on the "very rich" which only lasted a decade or so - now is the time for people to make use of these ATMs and trading platforms to diversify at least a small portion of their wealth into crypto. 

The people of Cyprus and Venezuela regret they didn't. 

[davis196]

I know one of the Robinhood founders.This is great news for them.
Zero-fee stock&crypto trading will be the business model of the future.

[btyco]

It's a zero fee trading exchange but when you try to withdraw your funds look at how much they charge you. It is significantly more than all the other exchanges. It's a good place for day traders who leave their coins there, but not ones that withdraw daily

[squatter]

It's a zero fee trading exchange but when you try to withdraw your funds look at how much they charge you. It is significantly more than all the other exchanges. It's a good place for day traders who leave their coins there, but not ones that withdraw daily

Last I checked, you can't deposit or withdraw coins on Robinhood at all. It works like a bucket shop. You deposit dollars, you can buy and sell within the app, and you can withdraw dollars.

Their fees for transferring funds are pretty much in line with competitors, though. They have free bank transfers for US users, $25 domestic wires and $50 international wires.