Robinhood Offers 1% Bonus as It Launches Crypto Transfers in Europe

Coinspeaker
Robinhood Offers 1% Bonus as It Launches Crypto Transfers in Europe

Robinhood, a popular retail investment platform, has expanded its cryptocurrency services in Europe, now allowing users to transfer digital assets in and out of its app. As of October 1, 2024, customers in the European Union can deposit and withdraw over 20 cryptocurrencies, including Bitcoin BTC $63 674 24h volatility: -0.3% Market cap: $1.26 T Vol. 24h: $33.24 B , Ethereum ETH $2 628 24h volatility: -0.1% Market cap: $316.99 B Vol. 24h: $16.30 B , Solana SOL $156.2 24h volatility: 0.1% Market cap: $73.18 B Vol. 24h: $2.55 B , and USD Coin USDC $1.00 24h volatility: -0.1% Market cap: $35.33 B Vol. 24h: $7.94 B .

The strategic move by Robinhood aims its global expansion, allowing European users more control over their crypto holdings. By enabling transfers, the platform allows users to manage their own digital assets, offering the option to store them independently rather than relying on external custodians.

Previously, when Robinhood introduced its crypto trading in the EU last December, users could only buy and sell within the platform. The inability to transfer assets off-platform limited their options, restricting movement to other exchanges or personal wallets.

Robinhood Optimistic on EU Crypto

Johann Kerbrat, the general manager of Robinhood’s crypto division, expressed optimism about the European market’s potential for digital currencies. “The EU can become a very attractive market next year,” Kerbrat told CNBC, highlighting the favorable regulatory environment emerging within the block.

He specifically pointed to the European Union’s forthcoming Markets in Crypto-Assets (MiCA) regulation, which aims to establish harmonized rules for the crypto industry across all 27 member states. 

“Once MiCA is fully in place, every EU country will fall under the same unified regime. In terms of total addressable market, [the EU] is as big as the US It’s definitely an interesting market for us,” said Kerbrat.

To encourage early participation, Robinhood is offering a special promotion to its European users. Customers will get back 1% of the value of the tokens they deposit, returned as cryptocurrency.

US Scrutiny Spurs Robinhood Abroad

Robinhood’s expansion in Europe comes at a time when many US-based crypto firms are grappling with regulatory scrutiny at home. Meanwhile, in the United States, the Securities and Exchange Commission (SEC) has initiated legal actions against several companies – including Coinbase, Binance, and Ripple – alleging that they are dealing in unregistered securities. 

These platforms have disputed the SEC’s claims, asserting that the tokens traded on their platforms do not qualify as securities requiring registration.

“We are disappointed by the way US regulation is happening, where it’s basically regulation by enforcement,” Kerbrat said. “We are not super happy to see that.” The SEC and the Financial Industry Regulatory Authority (FINRA) regulate Robinhood itself at the federal level in the US, and it also holds a BitLicense with the New York State Department of Financial Services.

In June, Robinhood announced plans to acquire Luxembourg-based crypto platform Bitstamp for approximately $200 million in cash, with the deal expected to close in the first half of 2025. This acquisition is poised to bolster Robinhood’s global footprint and provide access to Bitstamp’s extensive exchange technology and regulatory licenses.

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Robinhood Offers 1% Bonus as It Launches Crypto Transfers in Europe