Robinhood is expanding its crypto business by purchasing BitStamp for $200 million. Despite facing regulatory scrutiny at home, the financial services company aims to grow its crypto operations globally. BitStamp, founded in Slovenia in 2011, has over 50 licenses to operate internationally, with most revenue coming from Europe. This acquisition marks Robinhood’s entry into the institutional business, allowing it to offer staking and lending services abroad. While the SEC is investigating Robinhood for potential securities law violations, the company remains confident in its compliance with regulations. With crypto transactions generating significant revenue, Robinhood sees strong potential in the crypto market. This move comes as the SEC, led by chairman Gary Gensler, continues its crackdown on crypto, with both wins and setbacks. Despite regulatory challenges, Robinhood’s stock price saw a positive response to the news, reflecting investor confidence in the company’s future.
Vocabulary List:
- Expansion (noun): The action of becoming larger or more extensive.
- Regulatory (adjective): Relating to or making regulations.
- Compliance (noun): The action or fact of complying with a wish or command.
- Institutional (adjective): Relating to established organizations or governments.
- Crackdown (noun): A series of severe measures to restrict undesirable or illegal people or behavior.
- Confidence (noun): The feeling or belief that one can rely on someone or something trust.
