Robinhood Crypto – Robinhood Expands Crypto Services: Now Allowing Transfers in Europe

Robinhood Crypto – Robinhood Launches Cryptocurrency Transfer Features for EU Users

Robinhood Crypto – Retail investing platform Robinhood has announced that it will allow customers in Europe to transfer cryptocurrencies in and out of its app, significantly broadening its product capabilities in the region as it accelerates its international expansion.

New Features for European Users

In a blog post on Tuesday, Robinhood stated that it will permit customers in the European Union to deposit and withdraw more than 20 digital currencies through its platform. This includes popular assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and USD Coin (USDC).

This new feature effectively empowers Robinhood’s European users with the ability to self-custody their assets, meaning that rather than relying on a third-party platform for holding their cryptocurrencies, users can take ownership of their digital assets in a fully owned wallet.

Robinhood Crypto: A Brief History

Robinhood first launched its crypto trading service, Robinhood Crypto, in the EU in December 2022, enabling users to buy and sell cryptocurrencies. However, until now, users were not able to move their assets away from the platform, either to other third-party platforms or their own self-custodial wallets.

Johann Kerbrat, general manager of Robinhood’s crypto unit, shared with CNBC his optimism regarding the European market. He noted that the EU has the potential to become a significant hub for digital currencies, thanks to increasingly crypto-friendly regulations being adopted by the bloc.

Potential of the EU Market

Kerbrat stated, “The EU can become a very attractive market next year,” highlighting the Markets in Crypto-Assets (MiCA) regulation, which aims to establish harmonized rules for the crypto sector across all 27 EU member states. Once fully implemented, MiCA will create a unified regulatory framework that all EU countries will adhere to.

“In terms of total addressable market, [the EU] is as big as the U.S.,” Kerbrat added, suggesting that the region represents a compelling opportunity for Robinhood.

Incentives for European Customers

In a limited-time offer, Robinhood announced that it would give European customers 1% of the value of tokens deposited on its platform back in the form of the equivalent cryptocurrency they transfer into Robinhood. This initiative is expected to incentivize users to engage more with the platform.

Challenges in the U.S. Regulatory Landscape

As Robinhood rolls out these new features in the EU, it faces a contrasting regulatory environment in the U.S. The Securities and Exchange Commission (SEC) has initiated lawsuits against several U.S. crypto firms, including Coinbase, Binance, and Ripple, alleging that they are dealing in unregistered securities. Robinhood’s Kerbrat expressed disappointment with the current U.S. regulatory climate, noting, “We are disappointed by the way U.S. regulation is happening, where it’s basically regulation by enforcement.”

Despite these challenges, Robinhood is regulated by the SEC and the Financial Industry Regulatory Authority (FINRA) at the federal level in the U.S. Additionally, the company holds a BitLicense from the New York State Department of Financial Services.

Acquisition of Bitstamp

In June, Robinhood announced its intention to acquire Bitstamp, a Luxembourg-based crypto platform, for approximately $200 million in cash. This acquisition is set to close in the first half of 2025 and will enable Robinhood to leverage Bitstamp’s exchange technology to expand its global reach.

Kerbrat emphasized that the Bitstamp acquisition will provide Robinhood with access to more international markets and regulatory permissions worldwide. Bitstamp holds over 50 licenses and registrations globally, including in Singapore, the U.K., and the EU.

Focus on Institutional Investors

Beyond expanding its footprint, the partnership with Bitstamp is expected to help Robinhood diversify its crypto offerings to serve more institutional investors. For instance, Bitstamp offers a “crypto-as-a-service” model, enabling banks and financial firms to launch their own cryptocurrency capabilities.

Current Availability of Services

As of now, Robinhood’s crypto trading, deposit, and withdrawal functionalities are available exclusively to customers in the European Union, not in the U.K. The company launched its popular stock trading service to U.K. residents in November last year but has yet to extend crypto services to them.