Robinhood will strengthen its crypto services for European users in anticipation of a more transparent regulatory framework in the region.
EU users have been able to buy, hold and sell cryptocurrencies in the Robinhood app since last year. However, they were previously unable to transfer tokens from another exchange or withdraw their crypto to an external wallet.
The new feature will support 24 cryptocurrencies, including Bitcoin, Ethereum, Solana and USDC. In an interview with CNBC, Robinhood executives said that the European market “could become a very attractive market next year,” due to the European Markets in Crypto Assets (MiCA) regulation.
“Robinhood is going to benefit from first-mover advantages by tapping into European markets,” said Joel Hugentobler, a cryptocurrency analyst at Javelin Strategy & Research. “The MiCA regulations are expected to be fully implemented by December and are expected to provide robust guidance on business operations.”
An attractive alternative
There have been many expectations for MiCA, which is expected to establish guidelines for the issuance and trading of digital assets, as well as specify how companies should authorize, supervise transactions and provide information.
A transparent legal framework will make the EU an attractive option for crypto companies. According to Robinhood, the EU rivals the US in terms of total addressable crypto market. To encourage initial adoption, the company plans to offer EU customers 1% of the value of their deposit in crypto.
A complete cryptographic framework
Many crypto industry experts believe MiCA could serve as a model for global crypto regulation. However, the regulatory environment in the United States is not as conducive as in the EU.
The United States Securities and Exchange Commission believes that crypto falls under existing securities laws and has taken action against major crypto players, alleging that they operate as unregistered securities broker-dealers.
The increased focus on crypto is only intensifying as the US elections approach, marking a significant shift from previous years. Whatever the outcome of the elections, all eyes will be on the EU when MiCA comes into force.
“This is the first comprehensive cryptographic framework to be established, so there might be some challenges to overcome,” Hugentobler said. “But overall it’s still a big step in the right direction.” The EU is going around the US in crypto.
