On Thursday, Robinhood rolled out its crypto service to the European Union, granting users access to purchase and sell more than 25 different digital currencies. This marks the second time Robinhood has ventured outside the United States, as the firm had already opened a waitlist for individuals in the U.K. to join its stock-trading platform in early 2024. Many American crypto corporations are targeting the European Union for growth, as they are having difficulty obtaining approval from U.S. regulators.
Robinhood, a major online brokerage, declared on Thursday that it is unveiling a crypto trading facility in the European Union in an effort to strive for progress in international markets. Customers will have the option to buy, sell, and possess an array of more than 25 tokens, which include bitcoin, ether, ripple, cardano, solana, and polkadot. In addition, Robinhood endeavors to offer more tokens as well as the capacity to shift and "stake," or acquire rewards from, crypto in 2024. This is the second major expansion beyond the US, following the corporation's announcement last month of plans to launch stock trades for UK clients by early 2024. A waitlist was opened for the service in the UK last week, giving individuals up to 5% yields on their deposits.Robinhood is further planning to entice EU users by offering them free bitcoin for those who trade extensively and advocate the app to their friends. Users will be able to acquire up to one bitcoin, depending on a percentage of their monthly trading volume and the number of people they refer when they join. This comes as a number of U.S. crypto companies are focusing on the European Union for growth after having a difficult time from controllers in the United States. The U.S. Securities and Exchange Commission has taken legal action against several crypto firms, incorporating Coinbase and Binance, for supposedly disregarding securities laws.The EU, in the interim, has issued a wide-ranging set of regulations, called the Markets in Crypto-Assets regulation, that intend to bring in stricter guidelines for crypto trading platforms and issuers of so-called stablecoins — tokens tied to real-world assets like the U.S. dollar or euro.
Johann Kerbrat, general manager for Robinhood Crypto, remarked that the firm picked the EU as its first international target market for its crypto product due to the region's detailed regulations developed for the crypto sector. "With its comprehensive policies for crypto asset regulation, the EU is the ideal region to launch Robinhood Crypto's international expansion," Kerbrat said in a statement Thursday.With its European crypto offering, Robinhood hopes to convince users to trade with its service. The firm stated that it would make spreads on trades, including the rebate it receives from buy and sell orders, visible to users. Robinhood added that it never commingles customer coins with its own funds, apart from when required for operating purposes, like payment of blockchain network fees. Furthermore, it stores all customers' coins in cold wallets that are disconnected from the internet.Robinhood also informed that it has an insurance policy that covers losses to customer assets resulting from theft, which includes cybersecurity breaches, underwritten by Lloyd's.This security measure is notably important due to the numerous digital coin thefts that have occurred over the past couple of years. For instance, in April 2021, Justin Sun's HTX exchange and Heco bridge platforms were hacked to the tune of $115 million. Additionally, last year FTX, the former $32 billion crypto exchange, suffered a reputational crisis due to its sister market-making firm, Alameda Research, using customer funds for speculating on certain tokens.
コメント