Popular cryptocurrency trading and payments services provider, US-based finance company Robinhood, has said that their plans to go public is once again in limbo. The problem is they haven’t been able to come to terms with the regulators. The US SEC hasn’t approved the company’s prospectus.
A report from Bloomberg claims that the company is “facing scrutiny by the US Securities and Exchange Commission (SEC).” The report also says that it is all related to Robinhood’s crypto services. The company officials have confirmed that they would be going public as soon as they get a green signal from the SEC once the scrutiny is over.
The company had been planning to go public in June this year but then they postponed their plan to July. Urging members to not sell the shares within one month of IPO, the company in a statement published on its website said: “We won’t prevent you from selling shares you get through the IPO Access program. However, if you sell IPO shares within 30 days of the IPO, it’s considered “flipping” and you’ll be restricted from participating in IPOs for 60 days.”
Robinhood added support for cryptocurrencies in 2018 and has become a popular platform for first-time investors. Recently, it was also embroiled in a controversy.
Earlier this year, Coinbase, the world’s biggest cryptocurrency exchange, went public after getting a go-ahead from the US SEC.