If you’re based in Nevada and have been trying to buy cryptocurrency on Robinhood, you may have noticed that the option isn’t available. Here’s why.
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Robinhood, the popular no-fee stock trading app, has been a major player in the digital currency space since they first allowed Bitcoin and Ethereum trading on their platform back in February of 2018. However, as of May 2019, Robinhood is no longer available to residents of the state of Nevada. So, what happened?
In order to trade cryptocurrency on Robinhood, users must first set up a digital wallet with the company. However, due to recent changes in state regulations concerning money transmission, Robinhood is no longer able to offer this service to residents of Nevada. While the company is currently working on finding a solution that would allow them to once again offer digital currency trading to Nevada residents, for now, those in the state will have to look elsewhere if they want to trade crypto.
What is Robinhood?
Robinhood is a stock brokerage that allows customers to buy and sell stocks, ETFs, and options without paying commissions. The company was founded in 2013 with the mission of making financial services more accessible to everyone. In February 2018, Robinhood launched their crypto trading platform, which allows customers to buy and sell cryptocurrencies without paying any commissions.
However, Robinhood is not available in all states. For example, the company does not currently offer its services in Nevada. This is likely because Robinhood is not licensed to operate as a money transmitter in Nevada. Money transmitters are required to obtain a license from the Nevada Division of Financial Institutions before they can offer their services in the state.
What is Crypto?
Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its biggest allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
Why Can’t I Buy Crypto on Robinhood in Nevada?
There are a few reasons why Robinhood may not be available in Nevada. The most likely reason is that Robinhood is not yet licensed to operate in Nevada. In order to offer its services in a new state, Robinhood needs to obtain a money transmitter license from that state’s financial regulator. The process of obtaining a money transmitter license can be lengthy, so it’s possible that Robinhood has not yet completed the process for Nevada.
Another possibility is that Robinhood is not yet registered with the Securities and Exchange Commission (SEC) to offer securities in Nevada. In order to offer securities products (like stocks and bonds) in a new state, a firm must first register with the SEC. The process of registering with the SEC can also be lengthy, so it’s possible that Robinhood has not yet completed the process for Nevada.
Finally, it’s also possible that Robinhood simply hasn’t decided to offer its services in Nevada yet.Robinhood may be waiting to see how its business develops in other states before expanding intoNevada.
Whatever the reason, it’s currently not possible to buy crypto on Robinhood in Nevada.
In conclusion, it appears that you cannot buy crypto on Robinhood in Nevada at this time. This may be due to regulation or other issues. However, it is possible that this situation may change in the future.