Robinhood, a prominent online brokerage, announced on Thursday the introduction of its cryptocurrency trading service in the European Union. This initiative allows European users to engage in the buying and selling of over 25 different digital currencies. Will crypto prices go up even stronger now?
Can i Trade Crypto on Robinhood in EU?
This new development represents Robinhood’s second significant venture outside the United States. The company had previously revealed plans to introduce a stock-trading platform for U.K. customers, with a waitlist opening in early 2024. This move is part of a broader trend where major U.S. crypto companies are exploring European markets, especially in light of challenging regulatory environments in the U.S.
Is Robinhood Crypto Entry GOOD For Crypto Prices?
Naturally, when more players enter the market and create a stronger purchasing power on a specific asset, its prices go up. Now that Robinhood allowed crypto trading in the EU, we can assume that the traded volume of cryptos is to increase. The current trend of cryptos is heavily bullish, so more buying equals even higher prices.
Robinhood Crypto Trading: How it works
Robinhood’s new crypto service in the EU offers a diverse portfolio of more than 25 cryptocurrencies, including popular tokens like Bitcoin, Ethereum, Ripple, Cardano, Solana, and Polkadot. The company aims to expand its offerings in 2024, including features like crypto transfers and staking, which would enable users to earn rewards from their cryptocurrency holdings.
Incentives for EU Users
To attract users in the EU, Robinhood is introducing incentives such as the opportunity to earn free Bitcoin. This reward is based on the users’ trading volume and the number of new users they refer to the app.
Regulatory Landscape
The move comes at a time when U.S. crypto firms are facing stringent regulations from bodies like the U.S. Securities and Exchange Commission. In contrast, the European Union is working on the Markets in Crypto-Assets regulation, a comprehensive framework aimed at regulating crypto trading platforms and stablecoins.
Robinhood’s Strategy and Security Measures
Johann Kerbrat, the general manager for Robinhood Crypto, cited the EU’s advanced crypto asset regulation policies as a key reason for choosing the region for their international expansion. Robinhood is also emphasizing transparency and security in its European offering, ensuring clear display of trade spreads and maintaining robust security measures, including cold wallet storage and a crime insurance policy to protect against theft and cybersecurity breaches.
Industry Challenges and the FTX Controversy
The cryptocurrency industry has faced challenges, including significant thefts and hacks. The collapse of FTX, a major crypto exchange, highlighted the risks associated with the blending of trading and custodial services, underscoring the importance of robust security measures in the industry.
