Key Takeaways
- Robinhood announces crypto transfer services in the EU.
- The new feature would allow EU users to transfer more than 20 cryptocurrencies out of the platform.
- Earlier, the platform users only had the option to buy, sell and hold.
Retail investment giant Robinhood has expanded its crypto transfer services to Europe, allowing customers in the bloc to send and receive over 20 unique cryptocurrencies from their mobile app.
In an official blog post, Robinhood claimed the crypto transfer was one of the most requested features in the European Union.
Robinhood Makes Way For Self Custody
Robinhood launched its crypto services in the EU in December last year, allowing customers to buy, sell, and hold 35 cryptocurrencies. However, users could not self-custody their assets as they could not transfer them out of the app.
The new crypto transfer feature will now enable users to control their digital assets rather than rely on the platform’s custody, departing from the company’s previous model, where assets were held in a cold wallet and not used for lending or leverage.
According to Johann Kerbrat, Vice President and General Manager of Robinhood Crypto, the new feature is designed to empower users to self-custody their assets and gain easier access to decentralized finance (DeFi) platforms.
To sweeten the deal, Robinhood is offering a limited-time 1% matching incentive, where users will receive 1% of the total crypto assets deposited into their accounts, up to a maximum of €10,000 per customer.
This move is seen as a way to encourage users to deposit crypto into their Robinhood accounts rather than withdrawing it to other wallets, which can create liquidity issues for the platform.
The announcement comes within a month of the USDC reward program launch, which was announced in September.
EU Expansion Amid US Setback
Despite facing regulatory setbacks in the United States, Robinhood is pressing ahead with its expansion plans in the European Union.
In May, the retail crypto and stocks trading platform received a Wells notice from the Securities and Exchange Commission (SEC) warning of impending regulatory action for alleged violations of securities laws.
The SEC contends that Robinhood’s crypto offerings constitute securities that require registration with the agency. The notice came despite the platform’s efforts to avoid regulatory scrutiny, including the delisting of certain crypto tokens, such as Solana (SOL), Polygon (MATIC), and Cardano (ADA), which the SEC has deemed securities in separate lawsuits against Coinbase and Binance.
Yet, Robinhood is forging ahead with its EU expansion, even as the region is set to implement strict regulations under the Markets in Crypto Assets (MiCA) framework.
Earlier this year, Robinhood announced plans to acquire the Bitstamp crypto exchange. The firm also announced a $200 million deal to acquire a Luxembourg-based cryptocurrency platform.
It’s clear that the online brokerage is capitalizing on Europe’s regulatory push, establishing a presence that adheres to stringent and transparent guidelines – a welcome departure from the regulatory ambiguity often present in the U.S.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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