Robinhood, a popular financial platform, has recently expanded its crypto services in Europe to allow customers to transfer digital assets on and off the platform. This move, which includes self-custody options for over 20 cryptocurrencies like Bitcoin, Ethereum, and Solana, comes as the European Union prepares to implement the Markets in Crypto-Assets (MiCA) regulation to regulate the digital asset market. The decision to introduce crypto transfers for European customers was driven by user demand for increased flexibility in managing their digital assets. Previously, Robinhood’s European crypto services were limited to trading, but now customers can deposit and withdraw their digital currencies, enabling them to self-custody their assets in wallets they control.
Johann Kerbrat, the Vice President and General Manager of Robinhood Crypto, emphasized the importance of this new feature, stating that it makes self-custody and entry into decentralized finance (DeFi) simpler and more accessible for customers. The feature supports over 20 major cryptocurrencies, including Bitcoin, Ethereum, Solana, and USD Coin, giving users more control over their holdings. To encourage adoption, Robinhood is offering a limited-time promotion that rewards users with 1% of the value of any crypto they deposit on the platform, paid out in the same cryptocurrency. This promotional offer is aimed at attracting new users and providing existing customers with an added benefit for utilizing the new deposit and withdrawal functionality.
Robinhood’s decision to introduce crypto transfers in Europe aligns with the upcoming MiCA regulation, which aims to establish consistent rules for crypto assets across all 27 EU member states. Kerbrat expressed optimism about the European market, suggesting that the MiCA regulation could make the EU a competitive market for digital assets, on par with the U.S. market. With trading volumes reaching nearly $10 billion per month on centralized exchanges in the region, there is substantial potential for Robinhood’s continued expansion in Europe. Despite the regulatory challenges posed by the MiCA regulation, Robinhood has been proactive in engaging with regulators to ensure compliance, as the company is accustomed to dealing with regulatory scrutiny.
Robinhood’s expansion of crypto services in Europe comes at a time when the region is increasing regulatory oversight in the crypto space, with the MiCA regulation focusing on areas such as stablecoin issuance, anti-money laundering measures, and consumer protection. The regulatory clarity provided by the MiCA framework is expected to offer much-needed certainty for crypto companies operating in the EU. Despite these challenges, Robinhood has been resilient in its global expansion of crypto services. In June, the company announced a $200 million deal to acquire Bitstamp, a Luxembourg-based cryptocurrency platform with over 50 licenses globally, including in the U.K., Singapore, and the EU. This acquisition provides Robinhood with the necessary regulatory approvals to expand its services beyond Europe.
Recent reports have also hinted at Robinhood Markets and Revolut exploring the possibility of entering the stablecoin market, which is valued at $173 billion. However, neither company has confirmed these plans, indicating that these considerations are still in the early stages. Additionally, the California Department of Justice recently reached a $3.9 million settlement with Robinhood over issues related to cryptocurrency withdrawals between 2018 and 2022. Despite these regulatory challenges and legal settlements, Robinhood’s continued expansion and introduction of new features like crypto transfers in Europe demonstrate the platform’s commitment to providing innovative services and meeting the evolving demands of its customers in the digital asset space.
