Retail investing platform Robinhood reported it will be expanding its services in Europe, and customers can now withdraw cryptocurrencies from the app or deposit them in it. It is once again coming to the region with a new offer as part of its international expansion journey.
The EU customers, Robinhood announced in a blog yesterday, will be able to deposit and withdraw over 20 cryptocurrencies using the platform, including Bitcoin, Ethereum, Solana, and USD Coin. Innovation will help the user’s self-custody-direct ownership of cryptocurrency in his personal wallet instead of relying on third-party platforms for storing his coins.
Robinhood first began offering its crypto trading service, called Robinhood Crypto, to customers in the EU back in December 2023.The functionality initially facilitated buy/sell of cryptocurrencies but does not support transfers of them outside the platform. Overall, it represents a major shift in conditions for users exercising their autonomy and control over their digital assets.
Speaking at the event, Johann Kerbrat, General Manager of Robinhood’s crypto unit, said that the EU is an extremely promising market for digital currencies mainly for one simple reason: increasing crypto-friendly regulations in the region. The proof of it can be seen through the European Union Markets in Crypto-Assets, or MiCA, which is going to impose a harmonized regulatory framework for the crypto sector over all of its 27-member states. The total addressable market in the EU is comparable to that of the U.S., which makes it an exciting opportunity for us,” he added.
To attract a new set of customers, Robinhood will refund 1% of the value of tokens deposited on its platform in the form of the equivalent cryptocurrency to its European users-at least in the short term.
This is happening at a time when cryptocurrency-dealing firms in the United States are getting more and more regulatory eyes upon them. Kerbrat criticized the current regulatory environment, describing it as regulation by enforcement. Robinhood is registered with the U.S. SEC and also regulated by the Financial Industry Regulatory Authority, besides holding a BitLicense issued by the New York State Department of Financial Services.
In June, Robinhood announced that it would buy Luxembourg-based crypto exchange Bitstamp for about $200 million. The strategic play is supposed to raise the technological capabilities of Robinhood even as it takes advantage of the added entry opportunity into further international markets by virtue of the deal. By tapping into Bitstamp’s “crypto-as-a-service” platform, institutional investors are opening up the potential client base.
Currently, all the features of crypto trading, deposits, and withdrawals are accessible only to customers located in the EU, with further international expansion planned for the company.
