In the recent development of news, it is come to notice that Robinhood will be accepting transfers for all the listed cryptocurrencies. Through a smartphone app launched in March 2015, Robinhood Markets, Inc., an American financial services company with its main office in Menlo Park, California, enables commission-free trading of stocks, exchange-traded funds, and cryptocurrencies. The U.S. Securities and Exchange Commission has registered Robinhood as a broker-dealer, and it is a part of the Securities Investor Protection Corporation. Interest on cash balances of customers, selling order information to high-frequency traders (a practise for which the SEC started an investigation into the company in September 2020), and margin lending are the three main sources of the company’s revenue.
Crypto Transfers and Deposits:
According to reports Robinhood will be accepting transfer of crypto in different specifications of accounts. The specifications of accounts are:
Robinhood Instant Account: If an investor holds a Robinhood Instant Account, then instant access will be given for funds up to $1,000 to trade cryptocurrency.
Robinhood Gold Account: If an investor holds a Robinhood Gold Account, then the investor will access for funds up to the gold tier limit, and other additional requirements will land in account after normal settlement times.
Within three business days, proceeds from stock, ETF, and option sales are accessible for purchase on Robinhood Crypto. Limited cash deposits, however, and all bitcoin sales earnings are often available to instant accounts instantly.
Robinhood promises an increase in Crypto buying power for investors.
According to the reports from Robinhood, it is noted that, the funds acquired by the investor from the sale of Stock, ETF and option sales will be made available for the trade of cryptocurrencies in the span of three days. In Contrast, the cash deposits up to a certain limit and all the funds acquired by the investor from the sale of cryptocurrency are made available in the accounts immediately.
It is also to be noted that, Robinhood carries the rights to limit the access to instant account’s deposits at any given time. Robinhood also claimed that, any suspension on the services will be communicated with the affected investors, and any advancement in the policy will be duly communicated to investors.
Robinhood’s Tax policy.
According to the Tax policy set up by Robinhood, the digital currency held in the platform, which is treated as capital asset will be taxed under the category of property and will subjected to capital gains and losses. The company also claimed to provide the investors with tax documents during tax sessions.