Crypto Firms Robinhood and LibertyX Obtain New York BitLicenses

News, Regulation | January 28, 2019 By:

The New York Department of Financial Services (NYDFS) has approved the applications of cryptocurrency firms Robinhood and LibertyX for virtual currency licenses.

Robinhood Crypto, a subsidiary of Robinhood Markets Inc., has been authorized to offer services for buying, selling, and storing seven virtual currencies, including bitcoin, ether, Bitcoin Cash, and Litecoin. Its parent company offers a mobile app that allows individuals to invest in publicly traded companies and exchange-traded funds listed on US stock exchanges without paying a commission. The company also receive a money transmission license in New York.

“We’re delighted that Robinhood Crypto has been granted a virtual currency license and a money transmitter license in New York,” said Vlad Tenev, Co-Founder and Co-CEO of Robinhood Markets. “This will complement the larger suite of investment services that New Yorkers already have access to on the Robinhood platform. The NYDFS has been very helpful throughout this process, and we look forward to their ongoing guidance as we prepare to launch Robinhood Crypto in New York.”

As for LibertyX, the NYDFS has authorized the company to provide consumers the sale of bitcoin through debit terminals. According to the regulator, LibertyX is the first BitLicense recipient to allow customers to use debit cards to purchase bitcoin from traditional ATMs.

“After an extensive review process, we are delighted to receive the blessing of the NYDFS (BitLicense) and offer the first debit card bitcoin purchasing options to New York State residents,” said Chris Yim, Co-Founder & CEO of LibertyX.

At present, the NYDFS has approved 16 companies to offer crypto-related services in New York. These include BitPay, bitFlyer USA, Circle Internet Financial, Coinbase, bitcoin ATM operator Coinsource, Genesis Global Trading, Moon Inc., NYDIG Trust, payment processing company Square, Xapo, XRP II, Gemini Trust Company, Paxos and itBit Trust Company.

“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,” said NYDFS Superintendent Maria T. Vullo. “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.”