Robinhood, a trading app specially created for beginners, is currently one of the popular platforms in the market. Besides cryptocurrencies, Robinhood similarly provides stocks access as well as exchange-traded funds with no commissions charged though fees will be included. Five states will be able to access the app, namely: California, Massachusetts, Missouri, Montana and New Hampshire.
Since Robinhood’s roll out, a million users registered in less than one week. Traders who were able to pre-register can expect to receive emails that will invite them to participate. Based on the statement released by Robinhood, it makes clear its intent to make digital currencies accessible to everyone. The company declared, “Over the past few weeks, we’ve been overwhelmed by the enthusiasm towards Robinhood Crypto and are excited to contribute to the cryptocurrency community in a meaningful way… With the release of Robinhood Crypto, we’re continuing our mission of making the financial system work for everyone, not just the wealthy.”
Users who registered early to Robinhood described their experience in online forums. One user claimed he was waitlisted at 275K. When he asked to know the specific dates for the launch, he received a generic response from Robinhood that said “We have no further information at this time.” Others similarly complained about the unclear replies they received from Robinhood, prompting a few to state that Robinhood was a scam aimed to get users to fund its new accounts. Though the problem has since been resolved, new complaints emerged of how Robinhood lacked a depositing facility.
Cryptocurrency exchanges in the US are regulated at each state. No federal body, not even the CFTC or Commodity Futures Trading Commission, governs the exchanges. Exchanges, in order to operate, need to acquire a license in individual states. Despite this limitation, the cryptocurrency market is still monitored by federal securities regulators for any possibilities of fraud.