Updated as of July 3 at 11:30 am UTC: An update has been made to this article to specify that the license pertains to Robinhood Crypto.
Robinhood has recently extended its cryptocurrency services to Hawaii, Puerto Rico, and the U.S. Virgin Islands, as announced by the brokerage platform on July 2. This expansion comes following a significant regulatory change by Hawaii’s Department of Commerce and Consumer Affairs (DCCA).
On June 28, the Hawaiian regulatory body declared that cryptocurrency services no longer required a money transmitter license to operate within the state. This development is a major victory for the industry, especially considering that Hawaii, alongside California and New York, is known for having one of the strictest financial regulatory environments in the United States.
In addition, Robinhood Crypto is exploring the possibility of utilizing Bitstamp’s regulatory licenses to introduce crypto futures trading to customers in the U.S. and Europe, as reported by a recent Bloomberg article.
In June, Robinhood agreed to acquire Bitstamp for $200 million with the aim of providing services to institutional clients. The acquisition is still pending finalization and is expected to be completed by 2025.
With the increasing demand for crypto products from clients, Robinhood’s general manager of crypto, Johann Kerbrat, highlighted that the company’s actions are in response to market needs.
Despite its popularity for offering commission-free trading and a user-friendly interface, Robinhood has faced controversies, particularly during the 2021 meme stock craze involving companies like GameStop and AMC. Allegations of market manipulation and accusations of restricting access to certain stocks during this period have tarnished the brand’s reputation.
In a lawsuit filed in 2021, investors claimed that Robinhood’s actions caused them to suffer significant losses. The platform defended its decisions by stating that the trading limits were necessary to protect both individuals and the platform from excessive volatility.
Recently, in May, Robinhood announced that it was close to reaching a settlement with the plaintiffs, although specific details of the agreement were not disclosed.
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Hawaii and select US territories now have access to Robinhood Crypto