Crypto News- Robinhood, the popular trading platform, has disclosed its forthcoming expansion into the European market, with plans to establish brokerage operations in the United Kingdom. This strategic move was announced on Tuesday, November 7.
The announcement coincided with the release of Robinhood’s third-quarter results, which revealed a slight revenue miss. The company attributed the decline in its transaction-based revenue to reduced cryptocurrency trading volumes on its platform.
Robinhood’s European Expansion Plans in Focus as Q3 Revenues Slide
For the third quarter, Robinhood reported a net revenue of $467 million, slightly below the average estimate of $478.9 million from analysts. Nonetheless, this still marked a significant 29% growth compared to the same period in the previous year. Transaction-based revenues saw an 11% year-on-year decline to $185 million, primarily due to a 55% reduction in cryptocurrency notional volumes over the year, as stated in Robinhood’s announcement on Tuesday. Despite the decrease in cryptocurrency trading activity, Robinhood remains ambitious about its crypto services. The company recently revealed plans to expand its services to Nevada and added support for the meme cryptocurrency Shiba Inu (SHIB) last month.
This expansion move aligns with a backdrop where some cryptocurrency firms have suspended their services to U.K. customers due to new promotional regulations that require crypto firms to provide clear risk labels and implement system changes. These regulations came into effect on October 8. Additionally, in June, Robinhood ceased support for cryptocurrencies listed in SEC lawsuits against major players like Binance and Coinbase, including tokens like Cardano (ADA), Polygon (MATIC), and Solana (SOL). Currently, Robinhood facilitates trading for 15 different cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and Avalanche (AVAX).
These measures were taken in response to actions by the U.S. SEC, which classified certain cryptocurrencies as security tokens. As a regulated exchange, Robinhood aims to navigate this landscape while minimizing potential conflicts with federal securities regulatory authorities.
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