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New York Financial Watchdog Grants BitLicense to Robinhood Crypto-Exchange and LibertyX

Reading Time: 2 minutes by on January 25, 2019 News
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Robinhood Markets Inc.,  a U.S.-based financial services firm that claims to offer clients no-fee stocks and cryptocurrency trading and LibertyX,  a platform that makes it easy for people to buy bitcoin with cash via its Bitcoin ATMs, have both been granted the BitLicense by the New York Department of Financial Services (DFS),  according to a press release on January 24, 2019.

Little League of BitLicense Holders

As stated in the DFS press release, Robinhood, the creators of the zero-fee cryptocurrency trading app and LibertyX, a Bitcoin ATM firm have become the latest crypto-related startups to be granted the covetous BitLicense.

Additionally, the DFS says it has also given Robinhood a money transmission license and the firm will now be able to allow its clients to buy, sell or store seven cryptoassets including bitcoin (BTC), ether (ETH), litecoin (LTC), and bitcoin cash (BCH).

Commenting on the significant achievement, Vlad Tenev, Co-Founder and Co-CEO of Robinhood Markets, expressed excitement over the feat, adding that Robinhood Crypto can confidently launch operations in the state and allow residents enjoy its services. In his words:

“We’re delighted that Robinhood Crypto has been granted a cryptocurrency license and a money transmitter license in New York. This will complement the existing suite of investment services that New Yorkers already have access to on the Robinhood platform.”  

According to the DFS, both firms were subjected to a comprehensive and rigorous review process, and the firms have shown they have implemented proper anti-money laundering (AML) and know-your-customer (KYC) measures to curb the use of digital assets by bad actors through their platform, amongst other “stringent requirements.”  

Fostering Bitcoin Adoption

Founded in 2018, Robinhood Crypto LLC is fast becoming a heavyweight in the cryptocurrency ecosystem even though it’s only present in select U.S states including California, Massachusetts, Missouri, Montana, New Hampshire and now, New York.

In September 2018, BTCManager reported that Robinhood was looking to hire a financial officer as part of its plans to launch its initial public offering (IPO). The firm also hinted it was being audited by the United States Securities and Exchange Commission (SEC) as well as the Financial Industry Regulatory Authority (FINRA), at the time.

Established in 2013, by Chris Yim, LibertyX claims to be the firm that launched the first bitcoin ATM in the United States. Presently LibertyX makes it easy for bitcoiners to purchase the flagship distributed ledger technology (DLT) powered virtual currency in more than 19,000 stores in the U.S.

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