In a strategic move, online brokerage platform Robinhood has expanded its cryptocurrency trading services to the European Union (EU) as part of its international growth strategy. The platform aims to capitalise on the growing demand for cryptocurrencies in the EU and unlock new opportunities for users.

Features of Robinhood's Cryptocurrency Trading in the EU

Robinhood's latest crypto product allows European customers to buy, sell, and hold more than 25 tokens, including popular cryptocurrencies such as Bitcoin, Ethereum, XRP, Cardano, Solana, and Polkadot. The platform intends to broaden its token selection further and introduce additional features, including cryptocurrency transfers, staking, and educational rewards, by the year 2024.

The newly launched Robinhood Crypto app imposes no trading fees and offers a unique incentive for users. According to a company blog post, it is the only custodial crypto platform where customers receive a percentage of their trading volume back every month, paid in Bitcoin.

Why Europe?

Robinhood's choice to launch in Europe is strategic, considering the region's proactive approach to crypto asset regulation. In contrast to the regulatory challenges faced by crypto firms in the United States, the EU has proposed the Markets in Crypto-Assets (MiCA) regulation. This regulation aims to ensure the traceability of cryptocurrencies for anti-money laundering purposes and provide a regulatory framework for crypto companies.

Johann Kerbrat, GM of Robinhood Crypto, highlighted the EU's comprehensive policies for crypto asset regulation, stating, "The EU has developed one of the world’s most comprehensive policies for crypto asset regulation, which is why we chose the region to anchor Robinhood Crypto’s international expansion plans."

Expansion Plans and Competitive Edge

This expansion follows Robinhood's recent entry into the UK market and aligns with the platform's broader international expansion plans. The company aims to democratise finance and increase market access globally.

Despite the competitive landscape, Robinhood Crypto seeks to stand out by offering users a percentage of their monthly trading volume back in Bitcoin and referral bonuses in Bitcoin. This unique incentive structure is intended to attract and retain users in the highly competitive crypto trading space.

The EU launch comes amid the platform's efforts to tap into the surging demand for cryptocurrencies, with Bitcoin experiencing a bullish rally and Robinhood reporting a 75 percent increase in crypto trading volume in November.

Robinhood Crypto's expansion into Europe aligns with the EU's regulatory initiatives, positioning the platform to navigate the evolving crypto landscape in a region with a seemingly more favourable regulatory environment compared to the US.