Robinhood app. Is it safe,reliable, and legit?

[Yellowing]

Ooh, ok. But aren't there already stores and things that accept bitcoin? They made news. How can they (still) be legal?

 

[509322]

Ooh, ok. But aren't there already stores and things that accept bitcoin? They made news. How can they (still) be legal?

They can accept cryptos, but are required to adhere to the new laws. The new crypto tax laws make non-reporting illegal.

In the U.S., if you make a crypto transaction exceeding $600 it must be reported. Conversions, withdrawals and transfers are strictly regulated and must be reported (which has even been in effect for cash transactions for decades).

As part of the anti-laundering efforts all U.S. based companies offering financial services and transactions must positively identify their clients. (this has also been in effect for cash banking for decades).

Edit: Very, very few companies (in practical terms, no one does) accept cryptos. Bitcoin as a currency is essentially a failure at this point. Because of numerous problems, cryptos are a bust at this stage - they just aren't viable. They are a highly speculative "investment".

 

[Yellowing]

Ok, apart from it being a failure, Bitcoin is digital and therefore fast. How can that

In the U.S., if you make a crypto transaction exceeding $600 it must be reported.

prohibit any laundering, if you can just make several hundred 599$ transactions?

 

[SumTingWong]

It's a legit mobile trading company and app that is popular with millennials.

Financial accounts are just like creating a U.S. bank account and all companies must positively establish a person's identity by various U.S. laws.

Than why do I need to give them my SSN, Driver license and bank account just for create an account?

 

[upnorth]

It's no different than a lot of other apps out there, just like banking apps.

True as thats the OCR feature.

Than why do I need to give them my SSN, Driver license and bank account just for create an account?

No you shouldn't! That can be enforced after you created a account.

You should also seriously read the reviews before as those gives some very good hints/tips.

 

[509322]

Than why do I need to give them my SSN, Driver license and bank account just for create an account?

U.S. banking and securities laws. Cryptocurrency trading falls under the same rules. Robinhood must positively identify you. No anonymous trading is permitted in the U.S.

 

[509322]

True as thats the OCR feature.

No you shouldn't! That can be enforced after you created a account.

You should also seriously read the reviews before as those gives some very good hints/tips.

An exchange will setup an account without verifying identity, like Kraken, but you cannot do anything with the account - the account is disabled - until full identity has been established.

Most exchanges will not even setup an account if the applicant does not establish identity.

U.S. banking and securities laws.

 

[509322]

Ok, apart from it being a failure, Bitcoin is digital and therefore fast. How can that prohibit any laundering, if you can just make several hundred 599$ transactions?

Any aggregate number of transactions that appear suspicious must also be reported. It is the institution's or person's obligation to observe and report such transactions - even a lowly cashier standing behind a cash register or at a PC. Not reporting can get one into a lot of trouble. Even firms such as Walmart must provide extensive training on the subject - because the regulations cover all transactions... cash, credit cards, etc. A Walmart employee must report if they see someone buying a large number of gift cards - as just a single example. U.S. authorities will track down that individual.

If someone wants to pay in a structured manner, 5000 individual payments of $50 or make the same payment in 25 million pennies or 2500 $100 bills - which are all suspicious - it gets reported to the U.S. government.

U.S. banks, exchanges, retailers, etc - they all watch like hawks. Exchanges like Robinhood routinely shutdown accounts for even the slightest appearance of impropriety or money laundering. It is required by law. The U.S. Treasury, Homeland Security, Internal Revenue Service, Securities and Exchange Commission - they are just looking to make examples of people circumventing the laws.