Robinhood, a stock and cryptocurrency trading platform, has withdrawn its bank charter application with the office of the Comptroller of the Currency.
Robinhood Withdraws Bank Charter Application Due to Regulatory Challenges https://t.co/JYIlWbigFa Robinhood has withdrawn its bank charter application with the U.S. Office of the Comptroller of the Currency due to regulatory challenges Coint… pic.twitter.com/HHCGTn1jlR — CryptoPost (@crypto_PST) November 28, 2019
A spokesperson said:
“Robinhood will continue to focus on increasing participation in the financial system and challenging the industry to better serve everyone.”
However, Robinhood applied for a bank charter with the United States Office of the Comptroller of the Currency in April 2019 by asserting that it would be the first step towards being able to offer traditional banking products and services.
The full-service bank would have operated alongside the mobile-focused trading arm, which enables users to trade crypto, funds, and options on their phones and desktops.
Previously, Robinhood faced regulatory scrutiny after it rebranded the service’s name to “cash management” and removed references to deposit protection. U.S. politicians reportedly accused the company of failing to offer full transparency its 850,000+ consumers.
So, recently, LinkedIn ranked the startup 7th on the “The 50 hottest U.S. companies to work for” list, after it received regulatory approval from Britain’s Financial Conduct Authority, and raised $323 million in a funding round run in August.
In late October, Sygnum, the Swiss-based cryptocurrency bank, which gained a Swiss banking license in August 2019, received the go-ahead to offer banking services in Singapore in the form of a capital markets services license from the Monetary Authority of Singapore, the Asian city-state’s central bank.
Thus, in April 2019, San Juan Mercantile Exchange (SJMX), a Puerto Rico-based cryptocurrency trading platform, launched banking operations for institutional clients.