OKX Hit by Crypto Theft Due to SMS Notification Security Fail

Robinhood Acquires Bitstamp: Major Crypto Exchange Deal

Robinhood Acquires Bitstamp: Major Crypto Exchange Deal

With the $200 million purchase of Bitstamp, Robinhood is expanding its presence in cryptocurrency, a noteworthy step considering possible legal objections from the Securities and Exchange Commission (SEC). The SEC is reportedly considering suing Robinhood for potential securities law violations related to its digital asset business. The firm said it had received a Wells notice from the agency last month.

With this acquisition, Robinhood hopes to increase its profile in the cryptocurrency market, cater to institutional customers, and broaden its product line globally. Established in 2011, Bitstamp is a strategically valuable addition to Robinhood’s portfolio, holding over 50 global licenses and registrations.

Related articles

Growth and Variation in Robinhood’s Cryptocurrency Offerings

Beyond its beginnings as a trading tool for inexperienced stock and options users, Robinhood has been developing. The firm opened retirement accounts, issued a credit card, and announced plans to offer futures trading later in the year. This larger plan is supported by the acquisition of Bitstamp, which helps Robinhood improve its cryptocurrency trading capabilities.

Bitstamp offers strong regulatory credentials and a global reach but has a lower monthly trading volume than rivals like Binance, Coinbase, and Kraken. Robinhood’s cryptocurrency trading income increased significantly, from $38 million to $126 million in the first quarter of the previous year. In April, the number of cryptocurrency assets under custody increased to $26 billion, more than doubling, while the monthly notional trading volume nearly tripled yearly.

Prospects and Regulatory Obstacles

The SEC lawsuit is imminent, but Robinhood is still determined to grow its cryptocurrency offerings. According to Johann Kerbrat, general manager of Robinhood Crypto, the company’s focus on improving its cryptocurrency products has been driven by consumer demand. With the permission of regulatory bodies, the acquisition of Bitstamp is anticipated to occur in the first part of 2019. This will enable Robinhood to provide more sophisticated cryptocurrency services globally.

Robinhood intends to focus on institutional clients’ crypto-for-crypto trading in the United States. The Wells notice allows Robinhood to react and refute the proposed civil complaint, even if it does not necessarily portend an SEC lawsuit. Kerbrat emphasized the company’s dedication to its cryptocurrency business by expressing optimism about Robinhood’s standing in the US market and continued interactions with authorities.

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

Sign Up for Our Newsletter!


Next Steps: Sync an Email Add-On

To get the most out of your form, we suggest that you sync this form with an email add-on. To learn more about your email add-on options, visit the following page (https://www.gravityforms.com/the-8-best-email-plugins-for-wordpress-in-2020/). Important: Delete this tip before you publish the form.

Related Posts

Premium Partners

Premium Casino Partners

Top Casinos

Trust Dice




Press Releases

Related Posts