Robinhood Expands to Europe with Commission-Free Crypto Trading App Amidst Market Revival

Robinhood Markets Inc, a prominent player in the fintech industry, is extending its financial services into the European Union by introducing a commission-free cryptocurrency trading application. This strategic move comes shortly after the company launched its stock-broking services in the UK, marking its international expansion.

Scheduled to be operational from Thursday, the app offers European investors the opportunity to trade over 25 different cryptocurrencies, including widely recognized ones like Bitcoin, Ether, and Solana’s SOL. Johann Kerbrat, the General Manager of Robinhood Crypto, shared these details in a recent interview, highlighting the company’s efforts to broaden its cryptocurrency offerings.

In an innovative approach to customer loyalty, Robinhood plans to implement a cashback-like program. This scheme is designed to reward users with a Bitcoin percentage based on their monthly trading volume, adding an attractive incentive for frequent traders.

The timing of Robinhood’s crypto app launch in Europe coincides with a notable recovery in cryptocurrency prices. This uptick is fueled by anticipations of a potential shift in the US’s monetary policy and the buzz around the possibility of the first Bitcoin exchange-traded fund being introduced shortly.

Despite the recent rise in cryptocurrency prices, trading volumes have not reached the heights seen during the pandemic, when there was a surge in retail investor interest. This subdued trading activity has impacted Robinhood’s overall financial performance, as evidenced by a drop in the company’s third-quarter revenue, largely attributed to a decrease in crypto trading volumes.

Robinhood, which initially introduced crypto trading in 2018, currently supports approximately 15 tokens in the US. However, regulatory pressures have led to the removal of several cryptocurrencies from its US platform, including SOL and Polygon’s MATIC, following the SEC’s classification of these as unregistered securities. This regulatory landscape has prompted major US crypto exchanges to look for growth opportunities outside their home market.

European users of Robinhood Crypto will initially face certain limitations, such as the inability to transfer their crypto holdings outside the app. However, the company has plans to introduce additional features, including the capability for external transfers, more token options, and staking services in the coming year.

To facilitate its European operations, Robinhood has been registered as a virtual currency exchange operator in Lithuania since September and is actively seeking approvals in other EU countries. Looking ahead, the company aims to align with the EU’s upcoming Markets in Cryptoassets (MiCA) regulations, which are expected to be implemented in early 2025.