Home Business Robinhood restricts crypto buying and selling 'attributable to extraordinary market circumstances'

Robinhood restricts crypto buying and selling ‘attributable to extraordinary market circumstances’

The emblem of buying and selling app Robinhood is displayed on a smartphone.

Olivier Douliery | AFP through Getty Pictures

Robinhood restricted buying and selling in cryptocurrencies on Friday, as the value of bitcoin and a meme-inspired token rose sharply.

Customers started reporting that the buying and selling app had halted prompt deposits for crypto purchases earlier within the day, which means they may solely purchase the currencies with funds already deposited of their accounts. Such deposits can take as much as 5 enterprise days to clear, Robinhood mentioned.

“On account of extraordinary market circumstances, we have quickly turned off Prompt shopping for energy for crypto,” a Robinhood spokesperson mentioned in a press release emailed to CNBC.

“Clients can nonetheless use settled funds to purchase crypto. We’ll preserve monitoring market circumstances and speaking with our clients.”

The investing platform was the topic of a lot derision from clients on Thursday after it prevented them from shopping for GameStop and different shares common with retail merchants. Such shares have been the topic of wildly risky worth swings this week attributable to a flurry of traders impressed by the Reddit board WallStreetBets.

Robinhood’s transfer to limit crypto buying and selling comes after dogecoin, a digital coin based mostly on the favored “doge” meme, spiked as much as 800% Friday. The cryptocurrency was initially began as a joke however has since discovered some traction.

In the meantime, bitcoin also rose sharply Friday after Tesla CEO Elon Musk modified his Twitter bio to #bitcoin. “Looking back, it was inevitable,” the billionaire mentioned in a cryptic tweet.

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