Robinhood Brings Zero-Fee Crypto Trading App To New York Investors

Robinhood has launched its popular fee-free crypto trading app in New York for all the investors. As we are about to see in the latest cryptocurrency news, the startup is also launching Ethereum, bitcoin and other crypto trading services.

The California-based company announced this great news four months after the platform received a BitLicense from the New York State Department of Financial Services. As the press release pointed out:

 “Currently, you can invest in seven cryptocurrencies on Robinhood Crypto: Bitcoin, Bitcoin Cash, Bitcoin SV, Ethereum, Ethereum Classic, Litecoin, and Dogecoin. You can also track price movements and news for those and 10 additional cryptocurrencies.”

Crypto enthusiast has avoided going to New York because the state has a very stringent regulations system for the crypto sector. For some, BitLicense is a classic move of regulation-before-innovation which is a law that creates an unnecessary burden for small startups by making them go through expensive procedures. For example, there is a $5,000 fee to NYDFs with no approval guarantee as well as the $45,000 worth of legal paperwork as it was revealed by one of the BitLicense applicants Coinsettler Jaron Lukasiewicz in 2015.

Costs like these have influenced many New York startups to find a place with a friendlier crypto climate such as California or even European countries such as Switzerland. At the same time, crypto startups that managed to build a financial foundation for themselves, now are trying to find a comfortable place while entering New York.

As mentioned in the altcoin news previously, Robinhood is the 10^th company in a period of four years that received a BitLicense. According to the vice president of product Josh Elman, this decision to go into Wall Street is ‘’a crucial next step.’’:

 “We’ve introduced millions of people to equity investing on Robinhood, and want to do the same for everyone interested in crypto.”

The Fintech startup now has six million users around the US and by entering New York Robinhood plans to add a few million more. Their networth reached $5.6 billion after the last funding round that closed in March 2018. In the meantime, Robinhood managed to raise about $539 million capital so far.