Robinhood Launches New Commission-Free Cryptocurrency Trading App in the EU
Robinhood Markets Inc. has introduced a new application that allows European investors to trade more than 25 cryptocurrencies without paying any commission fees. The app will enable users to buy and sell popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). In addition, Robinhood Crypto CEO Johann Kerbrath announced that the platform will offer a loyalty program similar to cashback, rewarding users with a percentage of their monthly trading volume in Bitcoin.
For now, European Robinhood Crypto customers will not be able to transfer their crypto assets outside of the app. However, this restriction is expected to be lifted next year, along with the introduction of other tokens and staking services. Robinhood will need to obtain full authorization as a crypto service provider in at least one EU member state by early 2025 under the bloc’s new Markets for Crypto-Assets (MiCA) regime.
No Immediate Plans for UK Investors
While expanding its services in Europe, Robinhood does not currently have any plans to offer its cryptocurrency trading services to UK investors. The company cites a lack of regulatory clarity regarding digital assets as the reason behind this decision.
Rising Trading Volumes and Revenue Challenges
In a report submitted to the U.S. Securities and Exchange Commission (SEC), Robinhood revealed a significant increase in cryptocurrency trading volumes on its platform. November saw a 75% surge in trading volumes compared to the previous month. This rise in digital asset trading volumes could potentially reverse the declining cryptocurrency revenue that Robinhood has been experiencing over the past few quarters.
Hot Take: Robinhood Expands Crypto Trading Services in Europe but Remains Cautious with UK Investors
Robinhood continues to make strides in the cryptocurrency market by launching its commission-free trading app in the European Union. European investors now have access to a wide range of cryptocurrencies without paying any fees. However, Robinhood remains cautious about expanding its services to UK investors due to regulatory uncertainties surrounding digital assets. The company’s decision to introduce a loyalty program that rewards users with Bitcoin based on their trading volume is a notable move to attract and retain customers. With rising cryptocurrency trading volumes, Robinhood aims to overcome its recent revenue challenges and establish itself as a key player in the industry.
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