Retail investing platform Robinhood has announced that it will allow customers in Europe to transfer cryptocurrencies in and out of its app, expanding its product capabilities in the region. This move will give European users the ability to self-custody their assets, meaning they can take ownership of their cryptocurrency in a fully owned wallet. In December, Robinhood launched its crypto trading service in the EU, allowing users to buy and sell cryptocurrencies but not transfer them away from the platform. The company sees potential in the EU market for digital currencies due to crypto-friendly regulations being adopted by the bloc.
The EU’s Markets in Crypto-Assets (MiCA) regulation sets out harmonized rules for the crypto sector across all 27 member states, creating a unified regime for digital assets. This means that every EU country will fall under the same regulatory framework, making it an attractive market for Robinhood. The company’s general manager of crypto unit expressed optimism about the EU market, stating that it is as big as the U.S. and presents an interesting opportunity for expansion. Robinhood is offering European customers the ability to receive 1% of the value of tokens deposited on its platform back in the form of the equivalent cryptocurrency they transfer.
While Robinhood is expanding in the EU, U.S. crypto firms are facing regulatory challenges at home. The Securities and Exchange Commission has sued several companies for dealing in unregistered securities, leading to tensions between regulators and industry players. Robinhood expressed disappointment with the regulatory environment in the U.S., describing it as “regulation by enforcement.” Despite this, Robinhood is regulated by the SEC, FINRA, and holds a BitLicense with the New York State Department of Financial Services. The company’s acquisition of Bitstamp in June is expected to help it gain access to more international markets and regulatory permissions globally.
The deal with Bitstamp, valued at approximately $200 million in cash, will enable Robinhood to leverage the firm’s exchange technology and expand its reach globally. Bitstamp holds over 50 licenses and registrations globally, including in Singapore, the U.K., and the EU, which will help Robinhood diversify its crypto business and serve more institutional investors. The acquisition is set to close in the first half of 2025 and is aimed at strengthening Robinhood’s position in the cryptocurrency market. The company plans to use Bitstamp’s “crypto-as-a-service” offering to help banks and financial firms launch their own crypto capabilities.
Currently, Robinhood’s crypto trading, deposit, and withdrawal functionality are only available to customers in the European Union, not in the U.K. The company launched its stock trading service in the U.K. in November last year but has yet to offer crypto services to U.K. clients. With the expansion of its crypto capabilities in Europe and the acquisition of Bitstamp, Robinhood aims to capitalize on the growing demand for digital assets and provide users with more options and control over their investments. The company’s focus on international expansion and regulatory compliance will shape its strategy in the evolving cryptocurrency market.
