Expanding its footprint within the European Union (EU), Robinhood unveils a crypto trading app that operates without commissions.
This strategic move swiftly follows the company’s recent global foray into the UK, where it introduced stock-broking services merely a week ago.
Scheduled for a Thursday debut, the Robinhood app is set to empower European investors. The platform provides the capability to transact over 25 cryptocurrencies, including popular options like Bitcoin, Ether, and Solana’s SOL.
Johann Kerbrat, the general manager overseeing Robinhood Crypto, highlighted these offerings during a conversation with Bloomberg.
In a bid to heighten user engagement, Robinhood pioneers a distinctive loyalty program, mirroring the mechanics of a cashback system. Each user stands to receive a proportional percentage of their monthly trading volume in the form of Bitcoin.
Robinhood Crypto Trading App Launches Amid Market Upswing
The crypto trading app launch aligns harmoniously with a rebound in cryptocurrency prices. This resurgence is propelled by the anticipation of potential reversals in US interest-rate hikes.
Additionally, the imminent introduction of the inaugural exchange-traded fund linked to Bitcoin is projected as early as the coming month.
Robinhood’s November report revealed an impressive 75% surge in notional trading volumes for crypto in comparison to the previous month.
Despite the burgeoning crypto prices this year, trading volumes have remained disproportionately modest. This is in stark contrast to the surge in retail investor activity witnessed during the throes of the COVID-19 pandemic.
The restrained enthusiasm within this domain has impacted Robinhood’s overall financial performance, precipitating a dip in third-quarter revenue, predominantly attributed to a stark 55% decline in crypto trading volumes relative to the prior year.
Presently, in its domestic market, Robinhood boasts an offering of approximately 15 tokens. However, the company found itself compelled to delist certain coins, including SOL and Polygon’s MATIC, subsequent to their classification as unregistered securities by the US Securities and Exchange Commission back in June.
Robinhood Crypto App Eyes EU Expansion Amid Global Regulatory Shifts
The regulatory crackdown has prompted major US crypto exchanges such as Coinbase, Kraken, and Gemini to broaden their horizons by extending operations across international borders.
As of now, European users engaged with Robinhood Crypto trading app face a restriction – the inability to transfer their crypto holdings beyond the confines of the app. Nevertheless, this limitation is slated for removal in the upcoming year, coinciding with the introduction of additional tokens and staking services.
Since September, Robinhood has been officially registered as a virtual currency exchange operator in Lithuania. The platform is actively seeking approvals across various EU countries.
Furthermore, once the EU’s upcoming Markets in Cryptoassets (MiCA) regime comes into effect in early 2025, Robinhood will be mandated to obtain complete authorization as a crypto service provider within at least one EU member state.
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