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Cryptocurrency exchange Robinhood conferred BitLicense by New York regulators

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Cryptocurrency exchange Robinhood conferred BitLicense by New York regulators
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The United States government might be on a shutdown but the cryptocurrency industry is still steaming on, as indicated by the virtual currency license being granted to the California-based cryptocurrency exchange Robinhood.

Robinhood, the commission-free cryptocurrency exchange has just been granted a license to trade in cryptocurrencies or a BitLicense by the state of New York as announced by their blog post, dated January 24. The exchange was also granted a money transmission license by the state.

New Yorkers will now be able to invest and trade in digital currencies through the Robinhood platform and application.

The BitLicense was granted to Robinhood by the New York Department of Financial Services [DFS] which maintains a very selective policy of granting these licenses. Genesis Trading and Square are other exchanges that hold a BitLicense.

Maria T. Vullo, a financial services superintendent at the department stated:

“DFS continues to lead the way in responsibly supervising and advancing innovation in New York’s flourishing financial technology sector through a strong state-based regulatory regime.”

Despite being only a year-old, Robinhood has expanded to over 30 states throughout the US. Launched in the infamous “crypto-bloom” at the beginning of 2018, the crypto-exchange which boasted zero-commission managed to amass a million sign-ups in a matter of days. Proponents even pegged Robinhood to be a potential rival to Coinbase.

Robinhood, valued at a whopping $5.6 billion, will be offering trading services for seven of the top cryptocurrencies, which will include the likes of Bitcoin [BTC], Ethereum [ETH], Bitcoin Cash [BCH], Litecoin [LTC], among others that are yet to be confirmed.

Vlad Tenev, the co-CEO of Robinhood stated in a press release:



“We’re delighted that Robinhood Crypto has been granted a virtual currency license and a money transmitter license in New York. This will complement the larger suite of investment services that New Yorkers already have access to on the Robinhood platform.”

In addition to their cryptocurrency exchange services, the exchange also caters to the financial technology industry. Back in December, to diversify their operations, the exchange launched their checking and savings account, complete with a debit card facility and no minimum balance.

LibertyX, the Bitcoin ATM provider was also granted a BitLicense by the state, making it the first licensed company to allow New York residents to purchase Bitcoins using debit cards via ATMs, stated a press release by the company. Facilitating the same, Coinsource, an operator and a manufacturer of Bitcoin Teller Machines was granted a BitLicense last year.





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Altcoins

Bitcoin SV [BSV] gets hit with another reorg as multiple blocks get orphaned, including a 128 MB block

Akash Anand

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Bitcoin SV [BSV] gets hit with another reorg as multiple blocks get orphaned, including a 128 MB block
Source: Pixabay

Bitcoin SV [BSV] and its proponents have been making headlines over the past couple of weeks, either due to developments or because of comments made by its major proponents, Craig Wright, the chief scientist at nChain, and Calvin Ayre.

The network was also hit with several members of the cryptocurrency community alleging that the cryptocurrency itself is a sham without any use cases, as evidenced by its delisting on several popular cryptocurrency exchanges like Binance, Kraken and Shapeshift.

The latest news added salt to BSV’s wounds after it was revealed that the network went through another blockchain reorganization on a 128 MB block. This fact was pointed out by Nikita Zhavoronkov, the lead developer of Blockchair, who had tweeted:

“Whoops! $BSV has experienced yet another reorg, this time 6 (six!) consecutive blocks were orphaned (#578640–578645), this chain included a 128 MB block #578644 🤦‍♂️ The network was basically stuck for 1.5 hours, and this shows that even 6 confirmations are not enough.”

Orphaned blocks are valid blocks which are not part of the main chain. There are ways that they can occur naturally when two miners produce blocks at similar times or they can be a result of an attacker with enough hashing power using it for nefarious activities like reversing transactions.

A major reason why this reorg event made news was that a major 128 MB block was stuck in transaction, something that was not supposed to occur according to the initial claims made by the SV camp. Supporters of the cryptocurrency, however, have stated that despite being slower than promised, the transactions on the block settled faster than that on a Bitcoin Core block.



One supporter of BSV, mboyd1, tweeted:

“Orphaned blocks are a feature, not a bug”

To this tweet, Zyo, another cryptocurrency enthusiast replied:

“yes, but orphaning 6 blocks in a row is not good, that means that 6 confirmations is not safe. It’s a bug because the 100+ MB take way too long to propagate and validate. There is a reason why BCH doesn’t have [yet] 100+ MB blocks.”





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