The crypto trading platform Robinhood cancels its bank charter application with the Office of the Comptroller of the currency as we are reading further in the blockchain news.
Per the reports, Robinhood cancels its application with the regulator because of the regulatory challenges the company faced in receiving a charter. A spokesperson from the company said that ‘’Robinhood will continue to focus on increasing participation in the financial system and challenging the industry to better serve everyone.’’
Robinhood applied for the bank charter with the United States Office of the Comptroller of the currency back in April stating that it would be the first step to being able to offer more traditional banking products and services. The full-service bank could also have operated alongside the mobile-focused trading arm which will make it possible for users to trade crypto and choose options on their phones and desktops.
Previously, Robinhood faced a lot of regulatory issues after it rebranded the name of the service to ‘’cash management’’ and removed the references to deposit protection. The US politicians accused the company of failing to offer an increased degree of transparency for more than 850,000 customers. LinkedIn ranked the startup on the 7th position on the ‘’50 hottest US companies to work for’’ list after getting the regulatory approval from Britain’s Financial Conduct Authority and managed to raise up to $323 million in the latest funding round in August.
At the start of October, the Swiss-based cryptocurrency bank Sygnum gained the Swiss banking license in August this year and received the green light to offer banking services in Singapore in the form of a capital market services license from the Singaporean Monetary Authority which is the central bank of the country.
The Robinhood app company has not been shy about sharing its plans to create a new investment paradigm that is focused on bringing many new retail investors. As noted in the latest cryptocurrency news, Robinhood also applied for a federal bank charter so in the long term, the goal is to disrupt the entire banking system as a whole. The banks have a lot to lose since many crypto companies are trying to develop a distinctive product that will attract retail investors and people who want to use decentralized platforms.
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