Robinhood has brought its popular commission-free crypto trading app to New York investors.
The California-based startup announced Thursday that it is launching bitcoin, ethereum, and other cryptocurrency trading services in New York. The announcement appeared precisely four months after Robinhood received a BitLicense from the New York State Department of Financial Services (NYDFS).
Crypto purveyors, in general, have avoided working in New York due to the state’s stringent crypto regulations. To many, BitLicense is a classic case of regulation-before-innovation, a law that unnecessarily burdens young startups with expensive procedures – a $5,000 fee to NYDFS with no guarantee of approval, as well as $45,000 worth of legal paperwork, as revealed by Coinsettler Jaron Lukasiewicz, one of the BitLicense applicants, in 2015.