Robinhood, LibertyX Receive New York State’s BitLicense

Published on [Date Not Specified] by Cryptovest Staff

The New York Department of Financial Services has granted Robinhood and LibertyX approval to offer crypto-related services in the state.

The New York Department of Financial Services (NYDFS) said on Thursday it had granted BitLicenses to stock and crypto trading app Robinhood and Bitcoin ATM provider LibertyX.

Since it started offering commission-free crypto trading last year, Robinhood has been expanding throughout the US at a fast pace. The service was initially available to citizens in five states, but it currently covers more than 30 states. The company said it would roll out in New York over the coming months now that it has the license, offering trading in seven cryptocurrencies, among them Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). The NYDFS has also granted a money transmission license to Robinhood.

“We’re delighted that Robinhood Crypto has been granted a virtual currency license and a money transmitter license in New York. This will complement the larger suite of investment services that New Yorkers already have access to on the Robinhood platform,” Robinhood co-founder and co-CEO Vlad Tenev commented.

For its part, LibertyX is the first NYDFS virtual currency licensee that will allow its users to buy Bitcoin with debit cards from traditional ATMs. Co-founder and chairman Kyle Powers said that LibertyX “loves New York bitcoiners” and the company was excited to provide state citizens with an instant way to buy coins.

The BitLicense was created by the NYDFS in 2015 as a special permit applying to virtual currency exchanges. Initially, it took over a year to obtain, with crypto entities criticizing the process for being too cumbersome. Last year, nine companies received BitLicense, marking a significant increase in the number of approvals. With the addition of Robinhood and LibertyX, the state regulator has granted the permit to a total of 16 companies, among them bitFlyer, Coinbase, XRP II, Circle, and NYDIG.

“DFS continues to lead the way in responsibly supervising and advancing innovation in New York’s flourishing financial technology sector through a strong state-based regulatory regime. Today’s approvals add to the growing list of responsible virtual currency providers who recognize and appreciate how a comprehensive regulatory framework fosters a competitive marketplace that benefits both consumers and industry.” – NYDFS superintendent Maria Vullo