Robinhood decides not to go after bank charter
The fiat and crypto company decides it would be too difficult
In an effort to comply with the country’s standards for traditional financial institutions, the stock and cryptocurrency platform Robinhood presented to the Office of the Comptroller of the Currency a bank charter application. Now, after dealing with the different requirements and several challenges that could bring inconveniences to the company, it decided to take a step back.
As CNBC reported, a spokesperson from Robinhood said that the company would continue to focus on getting more participation in the financial system but the hope is set for a financial system to better serve the needs of everyone, not just the traditional businesses. The intention Robinhood had with this application was to be able to get in the market by offering more traditional banking products and services to its customers; however, the challenges that it might face in the future made it think twice about it. Since April, this request was presented to the United States Office of the Comptroller of the Currency.
In the middle of the process for the application, Robinhood went through rough examinations to comply with their regulations, this happened after it rebranded the company’s services to ”cash management” and remove the deposits protections. In fact, several politicians in charge accused the company of not being transparent to the more than 850,000 consumers they have.
In spite of all the situation, Robinhood seems to be doing well as it was just ranked in the LinkedIn site in the seventh position in the list of the 50 best companies to work for. This was after receiving regulatory approval from Britain’s Financial Conduct Authority, which allowed them a funding round to collect $323 million back in August.