The Massachusetts SEC Is Attempting to Revoke Robinhood's Broker-Dealer License
By Jamie G - Cryptocurrency Investor - 16-04-2021
According to Bloomberg, the head of the state's securities division, William Galvin, said in a recent administrative complaint that Robinhood has been continuing a pattern of enticing trading among their customers. The latest lawsuit follows a complaint lodged by Galvin's office in December 2020, claiming that Robinhood's ads inappropriately targeted novice investors.
The state cited Robinhood's recent operation, such as a promotion that offers customers cash incentives based on new deposits, as evidence of a firm culture which has not changed.
Robinhood replied to the new lawsuit, claiming that the action could deprive “millions of Bay Staters” of access to its website. The company has filed a lawsuit in Massachusetts seeking to overturn a newly enacted fiduciary rule that state regulators have accused it of violating. The law, which goes into effect in 2020, allows brokers to behave in the best interests of their clients.
“Robinhood is a ‘self-directed’ brokerage firm that does not make investment recommendations or provide investment advice.” the firm said in the complaint.
Since being involved in the contentious GameStop stop short-squeeze, Robinhood has come under increasing scrutiny from regulators and users alike. The trading group was outraged when Robinhood stopped buying GameStop stock in January 2021.
Robinhood has also been plagued by a number of technical problems, which have reportedly resulted in significant losses for traders and prompted more legal action against the firm.
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Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
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