Vince Quill6 hours agoRobinhood is now available in Hawaii and select US territoriesThe brokerage platform took advantage of Hawaii’s recent change to money transmitter licensing to expand to the non-contiguous United States.1679 Total views8 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksRobinhood has expanded its services to Hawaii, Puerto Rico and the U.S. Virgin Islands, the brokerage platform announced on July 2, following a significant regulatory change by Hawaii’s Department of Commerce and Consumer Affairs (DCCA).
On June 28, the Hawaiian regulator announced that cryptocurrency services no longer needed a money transmitter license to operate in the state. This shift marks a big win for the industry, considering Hawaii represents one of the strictest financial regulatory climates in the United States, along with California and New York.Source: RobinhoodRobinhood may leverage Bitstamp to offer crypto futures to U.S. and European customers
According to a recent Bloomberg article, Robinhood is also considering using the regulatory licenses held by Bitstamp to offer crypto futures trading to customers in the U.S. and Europe.
In June, the brokerage platform agreed to purchase Bitstamp for $200 million to offer institutional client services. Robinhood’s acquisition has not yet been finalized and is expected to close in 2025.
When the deal was announced, Robinhood’s general manager of crypto, Johann Kerbrat, explained that the company’s actions were a response to increased client demand for crypto products.
Related: Robinhood users are getting AI tools to help them tradeForgiven, but not forgotten?
Robinhood is popular because of its commission-free trading model and simple user interface. However, much controversy still surrounds the brand due to allegations of market manipulation during the 2021 meme craze, when stocks like GameStop and AMC saw meteoric rises due to heightened investor interest.
Unfortunately, the fundamentals of the underlying businesses that comprise meme stocks are often completely divorced from the social media hype that sends these stocks soaring.
In a 2021 lawsuit, investors accused the platform of restricting access to these stocks at the height of the meme mania. This led to what these investors characterized as billions of dollars in losses. Robinhood defended its actions by claiming that the trading limits were necessary to protect individuals and the platform from heightened volatility.
More recently, in May, Robinhood announced it was nearing a settlement with the plaintiffs, though the exact details of the settlement were not disclosed.
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