New York Authorities Provide Licenses To Two Crypto Companies
The NY State Department of Financial Services (NYDFS) has provided a license for crypto activities to the Robinhood trading platform and LibertyX, a crypto ATM provider, as follows from the regulator’s press service.
Robinhood obtained permission to trade in the State of New York with seven digital assets, which include bitcoin, ether, and Litecoin. Besides, the platform provides a money transfer service.
The first information about the Robinhood's intention to get official state permission appeared in the summer of 2018. In February, the company provided clients with the possibility of crypto trading with a zero commission, and in May, as part of a funding round, it managed to raise $363 million. In the autumn it was announced that Robinhood plans to enter the IPO market. According to Reuters, the company is currently valued at $5.6 billion.
LibertyX can also place its crypto ATMs, which allow purchasing bitcoins using credit cards, in NY. The first bitcoin ATM was created by the company in 2014.
Together with the issuance of work permits to Robinhood and LibertyX, the NY financial regulatory organization has already approved the activity of 16 crypto companies.
The NYDFS first introduced the BitLicense in 2015. It allows crypto companies to operate in the state in accordance with regulatory requirements. Back then, many firms were critical of excessively strict rules and were forced to wind down their operations in New York.
As previously reported, the financial regulator of New York gave official permission to use the Signature Bank blockchain platform.